USD/CHF holds below the mid-0.8900s ahead of Swiss ZEW data


  • USD/CHF trades in negative territory around 0.8928, despite the upbeat US data.
  • The US Purchasing Management Index (PMI) data for October came in better than expected.
  • The rising geopolitical tension in the Middle East might boost the CHF.
  • Market players will monitor the Swiss ZEW Survey Expectations for October ahead of the US growth numbers.

The USD/CHF pair loses traction during the Asian trading hours on Wednesday. That being said, the geopolitical conflicts in the Middle East continue to hang over the market and benefit Swiss France (CHF). The pair currently trades near 0.8928, down 0.05% on the day.

The US Purchasing Management Index (PMI) data on Tuesday came in better than expected. The flash Composite PMI for October climbed to 51.0 from 50.2. Meanwhile, the US S&P Global Manufacturing PMI for October surged to 50, better than the market expectation of 49.5. This is the first time in six months that manufacturing has not fallen below 50. The Services PMI rose to 50.9, above the consensus. The Services PMI rose to 50.9, while Manufacturing PMI grew to 50.0. This is the first time in six months that manufacturing has not fallen below 50.

Additionally, the Richmond Manufacturing Index for October fell to 3 from 5 in the previous reading, below the market expectation. The upbeat US economic data alleviated fears that tighter monetary policy and higher borrowing rates would dampen investment and industrial activity. However, traders will take cues from the US growth numbers and core Personal Consumption Expenditure Index (PCE) data for fresh impetus. The stronger-than-expected data could lift the Greenback and act as a tailwind for the USD/CHF pair.

On the other hand, the rising tension in the Middle East might cap the upside of the pair and boost the safe-haven assets like Swiss France. Last week, the Swiss Trade surplus widened more than expected in September. Trade Balance arrived at 6,316M versus 3,814M seen in the previous month, above the market consensus of 3,770M. Meanwhile, Exports surged to 24,795M MoM in September from the previous reading of 20,932M whereas Imports came in at 18,480M MoM versus 17,118M prior.

Market players will monitor the Swiss ZEW Survey Expectations for October. Later this week, the preliminary estimate of the US Q3 Gross Domestic Product (GDP) will be due on Thursday, and the US Core Personal Consumption Expenditure Index (PCE) will be due on Friday. These events could give a clear direction to the USD/CHF pair.

 

USD/CHF

Overview
Today last price 0.8929
Today Daily Change -0.0003
Today Daily Change % -0.03
Today daily open 0.8932
 
Trends
Daily SMA20 0.906
Daily SMA50 0.8966
Daily SMA100 0.8898
Daily SMA200 0.9011
 
Levels
Previous Daily High 0.8954
Previous Daily Low 0.8888
Previous Weekly High 0.9042
Previous Weekly Low 0.8902
Previous Monthly High 0.9225
Previous Monthly Low 0.8795
Daily Fibonacci 38.2% 0.8929
Daily Fibonacci 61.8% 0.8913
Daily Pivot Point S1 0.8896
Daily Pivot Point S2 0.8859
Daily Pivot Point S3 0.883
Daily Pivot Point R1 0.8961
Daily Pivot Point R2 0.899
Daily Pivot Point R3 0.9027

 



 

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