- USD/CHF erodes a part of the overnight strong gains to a nearly two-month top.
- A modest USD pullback turns out to be a key factor exerting downward pressure.
- Smaller Fed rate cut bets should limit the downfall for the USD and the major.
The USD/CHF pair struggles to capitalize on the previous day's strong move up to a nearly two-month high and attracts some intraday sellers during the first half of the European session on Tuesday. The downtick drags spot prices to the 0.8615 region, or a fresh daily low in the last hour and is sponsored by a modest US Dollar (USD) pullback.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, retreats from its highest level since August 8 as bullish traders opt to take some profits off the table following the recent strong rally since the beginning of this month. Any meaningful USD corrective decline, however, seems elusive in the wake of firming expectations for a less aggressive policy easing by the Federal Reserve (Fed).
In fact, the markets have now fully priced out the possibility of another jumbo rate cut and expect the US central bank to lower borrowing costs by 25 basis points (bps) at the November policy meeting. This keeps the yield on the benchmark 10-year US government bond above the 4% threshold, which should continue to act as a tailwind for the Greenback and help limit the depreciating move for the USD/CHF pair.
Apart from this, a generally positive tone across the global equity markets might hold back traders from placing bullish bets around the safe-haven Swiss Franc (CHF) and offer support to the currency pair. Hence, it will be prudent to wait for strong follow-through selling before confirming that the strong move-up witnessed over the past two weeks or so has run out of steam and positioning for further losses.
Next on tap is the release of the Empire State Manufacturing Index from the US, which, along with speeches by influential FOMC members, will drive USD demand later during the North American session. Apart from this, the broader risk sentiment might provide some impetus to the USD/CHF pair and allow traders to grab short-term opportunities.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.14% | -0.39% | 0.07% | 0.17% | 0.13% | -0.17% | |
| EUR | 0.05% | -0.09% | -0.34% | 0.10% | 0.23% | 0.16% | -0.12% | |
| GBP | 0.14% | 0.09% | -0.21% | 0.21% | 0.32% | 0.26% | 0.03% | |
| JPY | 0.39% | 0.34% | 0.21% | 0.46% | 0.56% | 0.50% | 0.26% | |
| CAD | -0.07% | -0.10% | -0.21% | -0.46% | 0.10% | 0.06% | -0.18% | |
| AUD | -0.17% | -0.23% | -0.32% | -0.56% | -0.10% | -0.06% | -0.29% | |
| NZD | -0.13% | -0.16% | -0.26% | -0.50% | -0.06% | 0.06% | -0.23% | |
| CHF | 0.17% | 0.12% | -0.03% | -0.26% | 0.18% | 0.29% | 0.23% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates its losses and challenges 1.0800 post-ECB
The intense selling pressure continues to punish EUR/USD and sends it to nearly three-month lows in the proximity of the key support at 1.0800 the figure, always in reponse to the sharp advance in the US Dollar and further easing from the ECB.
GBP/USD clings to gains below 1.3000
GBP/USD retreats from recent tops and breaks below the key 1.3000 support on on the back of the intense move higher in the US Dollar following the release of upbeat US data releases and the ECB's rate cut.
Gold remains bid around the $2,680 region
Prices of Gold advance for the third consecutive session and trade near recent all-time highs around the $2,680 mark per ounce troy despite the incessant rise in the Greenback and the corrective uptick in US yields.
Crypto Today: Bitcoin dominance hits highest level since 2021, BTC and Ethereum steady while XRP gains
Bitcoin dominance climbs to 58.85% on Thursday, the highest level since April 2021. BTC and Ethereum hold steady above $67,000 and $2,600, key price levels for the top two cryptocurrencies. XRP gains on Thursday and trades above $0.5500.
Retail Sales post broad advance in September
Despite worries about the financial health of the consumer and potential weakening in the labor market, U.S. retailers had a solid month in September. Control group sales rose more than twice the expected amount, pointing to stronger Q3 consumer spending.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.