USD/CHF sliding back towards 0.8800

The USD/CHF is slipping back towards the 0.8800 handle.
The US Dollar is down over 3% for November against the rebounding Swiss Franc.
The Fed's upcoming Meeting Minutes could jumpstart the markets to close out Tuesday's trading.

Joshua Gibson FXStreet

The USD/CHF is continuing to drift lower on Tuesday, heading for 0.8800 as investors gear up for the Federal Reserve's (Fed) latest Meeting Minutes, due at 14:00 EST.

The Swiss Franc (CHF) has been on the rebound as of late, with Switzerland enjoying a sedate inflation rate in comparison with the rest of the European bloc, while the Swiss National Bank (SNB) has been regularly selling off its foreign currency reserves.

SNB flows force CHF higher, Fed could misalign with investor expectations

The SNB's foreign reserves reached massive levels over the last few years, reaching a size approximating the entire Swiss gross domestic product. The SNB has routinely outright purchased foreign currencies to prevent rapid appreciation in the desirable CHF in an effort to defend their domestic exporters.

But when the SNB's balance sheet gets too large, they're forced to reverse flows back into currency markets, dumping foreign cash reserves and repurchasing Francs, driving the price steadily higher.

The Fed's upcoming Meeting Minutes could galvanize US Dollar (USD) markets. Investors have baked in an expectation of a dovish Fed moving forward after last week's inflation figures came in below expectations, leading markets to celebrate the end of the rate hike cycle and begin looking forward to eventual rate cuts.

A hawkish showing from the Fed's Meeting Minutes could throw cold water on market participants' expectations, rattling the US Dollar as investors race to adjust their forward-looking positioning.

Swiss Franc price today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Euro.

	USD	EUR	GBP	CAD	AUD	JPY	NZD	CHF
USD		0.22%	-0.31%	-0.22%	0.01%	-0.29%	-0.28%	-0.10%
EUR	-0.21%		-0.51%	-0.42%	-0.22%	-0.50%	-0.47%	-0.31%
GBP	0.31%	0.53%		0.09%	0.30%	0.03%	0.03%	0.21%
CAD	0.23%	0.44%	-0.08%		0.22%	-0.06%	-0.04%	0.13%
AUD	-0.01%	0.23%	-0.30%	-0.21%		-0.29%	-0.27%	-0.07%
JPY	0.29%	0.51%	-0.02%	0.06%	0.29%		0.01%	0.20%
NZD	0.26%	0.47%	-0.05%	0.04%	0.25%	-0.04%		0.16%
CHF	0.10%	0.32%	-0.22%	-0.12%	0.10%	-0.18%	-0.16%

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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

USD/CHF Technical Outlook

The Swiss Franc eased back against the US Dollar from 2023's nearly decade-high of 0.8552 in July to early October's 0.9244, but the Franc has once again resumed appreciating, taking the US Dollar through the 0.9000 handle and sinking the pair back towards 0.8800.

The USD/CHF spent most of October and early November hung up on the 200-day Simple Moving Average (SMA) between 0.9050 and 0.9000, but the pair is currently seeing acceleration towards the downside as the CHF renews its climb.

The 50-day SMA made a bullish crossover of the longer 200-day SMA at the beginning of November, but bearish action is set to cause the 50-day SMA to whip back towards the downside, which would provide technical resistance for any bullish near-term plays in the USD/CHF.

USD/CHF Daily Chart

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.