USD/CHF consolidates around 0.8950 as investors shift focus to Fed-SNB monetary policy


  • USD/CHF trades sideways around 0.8950 as the US Dollar turns subdued after refreshing a six-month high.
  • The US Dollar failed to capitalize on strong Retail Sales data for August as it was majorly driven by higher gasoline prices.
  • The SNB is expected to maintain a hawkish tone as inflation in the Swiss economy has not come confidently below 2%.

The USD/CHF pair trades directionless around 0.8950 in the European session. The Swiss Franc asset struggles to find a decisive move as investors shift focus to the interest rate decision by the Federal Reserve (Fed) and the Swiss National Bank (SNB), which will be announced next week.

S&P500 futures added some gains in the London session, portraying ease in the risk-off profile after upbeat Chinese economic data receded worries about a global economic slowdown. China’s annual Industrial Production rose by 4.5% and Retail Sales expanded by 4.6%, outperformed expectations.

The US Dollar Index (DXY) corrected gradually to near 105.20 from its six-month high of 105.43 amid some improvement in the risk appetite of the market participants. The US Dollar failed to capitalize on strong Retail Sales data for August as it was majorly driven by higher gasoline prices. Meanwhile, US President Joe Biden vowed to bring down gasoline prices, which rose 106% in August.

After stickier headline consumer inflation and Producer Price Index (PPI), investors see the impact of rising gasoline prices limited on inflation, which would discourage Fed policymakers from discussing more interest rate hikes for the remainder of 2023.

On the Swiss Franc front, investors keenly focus on the SNB monetary policy, which will be announced on Thursday. The SNB is expected to maintain a hawkish tone as inflation in the Swiss economy has not come confidently below 2%. SNB Chairman Thomas J. Jordan already conveyed that the consequences of higher inflation are worse than the repercussions of a lower price index.

USD/CHF

Overview
Today last price 0.8954
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 0.8956
 
Trends
Daily SMA20 0.886
Daily SMA50 0.8774
Daily SMA100 0.888
Daily SMA200 0.9044
 
Levels
Previous Daily High 0.8971
Previous Daily Low 0.8915
Previous Weekly High 0.8945
Previous Weekly Low 0.8833
Previous Monthly High 0.8876
Previous Monthly Low 0.869
Daily Fibonacci 38.2% 0.8949
Daily Fibonacci 61.8% 0.8936
Daily Pivot Point S1 0.8924
Daily Pivot Point S2 0.8891
Daily Pivot Point S3 0.8868
Daily Pivot Point R1 0.898
Daily Pivot Point R2 0.9003
Daily Pivot Point R3 0.9036

 

 

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