USD/CHF rebounds as market mood turns cautious ahead of US CPI

USD/CHF resumes upside journey amid cautious market mood.
The US Dollar Index climbs to near 102.30 as wage growth remained sticky in July.
US inflation could turn out stubborn as global oil prices recovered sharply last month.

Sagar Dua FXStreet

The USD/CHF pair resumes its upside journey after a mild correction in the London session and is approaching the round-level resistance of 0.8800. The Swiss Franc asset strengthens as market sentiment turns bearish ahead of the United States Consumer Price Index (CPI) data, which will be published on Thursday at 12:30 GMT.

S&P500 futures generate decent gains in Europe as institutional investors raise Q3 Gross Domestic Product (GDP) forecasts. JP Morgan estimates July-September real annualized GDP at 2.5% vs. the prior forecast of 0.5%. US equities were under pressure on Friday as Nonfarm Payrolls (NFP) report demonstrated a slowdown in the hiring process, portraying concerns about forward demand.

The US Dollar Index (DXY) climbs to near 102.30 as wage growth remained sticky in July. Monthly and annual Average Hourly Earnings remained stable at 0.4% and 4.4% respectively but higher than expectations. Persistence in the US wage growth could force the Federal Reserve (Fed) to raise interest rates further.

This week, investors will focus on the mega event of the Consumer Price Index (CPI) for July. US inflation could turn out stubborn as global oil prices recovered sharply last month on expectations that interest rates by central banks are peaking now. This could elevate gasoline prices and eventually higher burden on US households.

Meanwhile, the Swiss Franc fails to find strength despite a steady Unemployment Rate for July. The monthly jobless rate remains unchanged at 1.9% despite higher interest rates by the Swiss National Bank (SNB). SNB Chairman Thomas J. Jordan is expected to tighten interest rate policy further as the consequences of a higher-inflation environment are higher than a low-inflation scenario.

USD/CHF

Overview
Today last price	0.8762
Today Daily Change	0.0035
Today Daily Change %	0.40
Today daily open	0.8727

Trends
Daily SMA20	0.8684
Daily SMA50	0.8873
Daily SMA100	0.8944
Daily SMA200	0.9155

Levels
Previous Daily High	0.8783
Previous Daily Low	0.87
Previous Weekly High	0.8806
Previous Weekly Low	0.8665
Previous Monthly High	0.9005
Previous Monthly Low	0.8552
Daily Fibonacci 38.2%	0.8731
Daily Fibonacci 61.8%	0.8751
Daily Pivot Point S1	0.869
Daily Pivot Point S2	0.8653
Daily Pivot Point S3	0.8607
Daily Pivot Point R1	0.8773
Daily Pivot Point R2	0.8819
Daily Pivot Point R3	0.8856

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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