USD/CHF holds ground near 0.8800 after soft Swiss Survey Expectations, US data eyed
|- USD/CHF rebounds due to downbeat Swiss economic data.
- Investors will monitor Switzerland’s inflation data, seeking further cues on interest rate hikes by SNB.
- Market participants await US economic data to gain a clearer insight into the Fed policy decision.
USD/CHF rebounds from losses registered in the previous two days, trading around 0.8800 psychological level at the time of writing during the European session on Wednesday. The pair is experiencing upward pressure due to Switzerland’s downbeat ZEW Survey – Expectations (Aug) released on Wednesday. The report showed a reading of -38.6 against the market consensus of -31.3 and from the previous -32.6 figure.
As per Credit Suisse, the majority of analysts anticipate that the Swiss National Bank (SNB) will execute another increase in its key interest rates during the third quarter (Q3), given the expected upsurge in inflation projected for the upcoming autumn season. Moreover, the Swiss Consumer Price Index (CPI) will be released on Friday, which is expected to slow down in August. Market participants will observe the inflation figure to better understand the further monetary policy decision by SNB.
The US Dollar Index (DXY) treads waters around 103.70, recovering from the recent losses. This turnaround can be attributed to the rebound in US Treasury yields, which is offering support to the US Dollar. It's worth noting that the prevailing dovish sentiment surrounding the policy stance of the US Federal Reserve (Fed) is contributing to a weakening of the Greenback.
During the Jackson Hole Symposium, Fed Chairman Jerome Powell emphasized that any future decisions regarding interest rates will be guided by data-driven analysis. As a result, investors are set to closely monitor the upcoming US economic data, aiming to attain a more comprehensive understanding of the economic path of the United States (US).
Wednesday's macroeconomic schedule highlights important events, notably the unveiling of US ADP Employment Change statistics for August and the preliminary Gross Domestic Product Annualized data for the second quarter (Q2). These datasets are expected to have a substantial influence on shaping strategies before engaging in fresh trading positions on the USD/CHF pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.