USD/CHF remains capped below the 0.8800 barrier ahead of US Retail Sales

USD/CHF trades sideways below the 0.8800 barrier after retreating from a multi-week high in the early Asian session.
The markets are convinced that the Federal Reserve (Fed) will keep the rate unchanged in its September meeting.
The exacerbated trade war tensions between the US and China might benefit the Swiss Franc.
Traders will take cues from the Swiss Producer and Import Prices, US Retail Sales.

Lallalit Srijandorn FXStreet

The USD/CHF pair holds ground around 0.8782 during the early Asian session on Tuesday. The pair remains sideways after retreating from multi-week high of 0.8827. The major pair remains capped around the 0.8800 barrier ahead of the Swiss Producer and Import Price Index for July and the US Retail Sales data.

Investors anticipate that the Federal Reserve (Fed) will keep the interest rate unchanged in its September meeting, but the possibility for an additional rate hike of 25 basis points (bps) increased to almost 40% in November. However, interest rates will stay high for longer in order to assure the return of inflation to 2%. This would maintain recession concerns. Market players will take more cues from US Retail Sales in July due on Tuesday and FOMC Minutes due later on Thursday. A more hawkish stance by the Fed might lift the US Dollar against its rivals.

On the other hand, market players is expected that the Swiss National Bank (SNB) will raise interest rates by 25 basis points (bps) to 2% in September, according to Bllomberg. About the data, the Swiss Unemployment Rate came in at 1.9% in July, matching expectations. The figure remained unchanged compared to the June reading and marked its lowest level since October 2022.

Furthermore, the headling surrounding the US-China relationship remains in focus. As a result of President Joe Biden's decision to restrict certain US technology investments in China, US investors have expressed concern that Beijing may retaliate or cease purchasing American technology. The renewed trade tension might benefit the safe-haven Swiss Franc and act as a headwind for the USD/CHF pair.

Moving on, the Swiss Federal Statistical Office will release the Producer and Import Prices on Tuesday. Meanwhile, US Retail Sales will be due later in the day. The monthly figure is expected to rise from 0.2% to 0.4% in July. Market participants will also monitor the FOMC minutes and the Fed officials’s comments for the Jackson Hole Symposium. Traders will take cues from the data and find trading opportunities around the USD/CHF pair.

USD/CHF

Overview
Today last price	0.8783
Today Daily Change	0.0018
Today Daily Change %	0.21
Today daily open	0.8765

Trends
Daily SMA20	0.8697
Daily SMA50	0.8842
Daily SMA100	0.8921
Daily SMA200	0.9124

Levels
Previous Daily High	0.8781
Previous Daily Low	0.8735
Previous Weekly High	0.8783
Previous Weekly Low	0.869
Previous Monthly High	0.9005
Previous Monthly Low	0.8552
Daily Fibonacci 38.2%	0.8753
Daily Fibonacci 61.8%	0.8763
Daily Pivot Point S1	0.874
Daily Pivot Point S2	0.8715
Daily Pivot Point S3	0.8695
Daily Pivot Point R1	0.8786
Daily Pivot Point R2	0.8806
Daily Pivot Point R3	0.8831

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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