USD/CHF rises to two-day highs near 0.9250

Swiss Franc among worst performers on Friday.
USD/CHF heads for weekly loss, but off lows.
EUR/CHF extends rebound, approaches parity.

Matías Salord FXStreet

The USD/CHF is up on Friday, but still down for the week. The pair surged to 0.9234, hitting the highest level in two days and then pulled back toward 0.9200, amid a weaker US Dollar.

On a weekly basis the pair is down by less than 50 pips, after recovering from 0.9080. The weekly close far from the bottom shows some difficulties for the Swiss franc extending the rally.

Dollar lows

The greenback lost momentum following the London fix and US economic data. Existing Home Sales dropped in December from 4.08 million to 4.02 million in December, above the 3.96 million of market consensus.

Kansas City Federal Reserve President Esther George said in Friday the US Economy is responding to Fed’s actions. She added it is encouraging to see inflation coming down but warned they have to be more patient in assessing if inflation is on a sustainable path down.

Swiss National Bank (SNB) Chairman Thomas Jordan said on Friday that “absolute priority should be to bring inflation down to price stability level.” He added that he won’t hesitate to reinstate negative interest rates to deal with negative inflation.

Analysts at Commerzbank, forecast the USD/CHF will move higher over the next months, reaching 0.95 by June and see it ending the year at 0.94 and resuming the upside in 2024.

The EUR/CHF rose sharply on Friday, with EUR/CHF approaching again the parity area. “Inflation in Switzerland has recently become more benign, which means that the SNB could soon have reached the end of its rate hike cycle. The ECB, on the other hand, is likely to put the brakes on monetary policy for a bit longer. We have therefore adjusted our EUR/CHF forecast slightly upward”, said analyst at Commerzbank. They see the cross at 1.01 by June and 1.02 in September.

Technical levels

USD/CHF

Overview
Today last price	0.9221
Today Daily Change	0.0064
Today Daily Change %	0.70
Today daily open	0.9157

Trends
Daily SMA20	0.9269
Daily SMA50	0.9349
Daily SMA100	0.9602
Daily SMA200	0.964

Levels
Previous Daily High	0.919
Previous Daily Low	0.9147
Previous Weekly High	0.9363
Previous Weekly Low	0.9167
Previous Monthly High	0.9471
Previous Monthly Low	0.9201
Daily Fibonacci 38.2%	0.9163
Daily Fibonacci 61.8%	0.9173
Daily Pivot Point S1	0.914
Daily Pivot Point S2	0.9122
Daily Pivot Point S3	0.9097
Daily Pivot Point R1	0.9182
Daily Pivot Point R2	0.9207
Daily Pivot Point R3	0.9225

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD extends slide toward 1.1800 on renewed USD strength

EUR/USD extends its daily slide and trades at a fresh weekly low below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.