USD/CHF remains defensive near 0.9200 on steady USD
|- USD/CHF remains quiet in the Asian session in the middle of the week.
- US 10-year benchmark Treasury yields fell on Tuesday following softer CPI data.
- US Dollar Index stays strong near 92.70 after short-lived CPI induced selling pressure.
The USD/CHF pair remains muted in the initial Asian trading hours on Wednesday. The pair fails to preserve the previous session’s upside momentum and hovers in a very narrow trade band.
At the time of writing, USD/CHF is trading at 0.9201, down 0.01% for the day.
The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, trades near 92.70 after testing the weekly low around 92.30 on Tuesday.
The US 10-year benchmark yields fell to 1.28% with a 3.05% loss following the softer US Consumer Price Index (CPI) data, which eased concerns the Fed would have to start tapering early.
The US Consumer Price Index (CPI), excluding the volatile food and energy components, rose 0.1% in August. Inflation grew 0.3% in the previous month as compared to 0.5% in July. The readings aligned with the Fed’s view of inflation as transitory and raised doubts about tapering this year.
It is worth noting that, S&P 500 Futures were trading at 4,443.05 with 0.57% losses, which indicates reduced risk appetite among investors.
On the other hand, the Swiss franc holds some ground on its safe-haven appeal amid risk aversion on the rapid spread of the delta variant of the coronavirus and its impact on global economic recovery.
Furthermore, strong economic data fuels the upside in the franc as Swiss producer and import prices jumped 4.4% in August on yearly basis. The Unemployment Rate fell to an 18-month low at 2.7% in August, mildly below the market consensus of 2.8%.
As for now, traders wait for the US Industrial Production data, NY Empire State Manufacturing Index, and Trade Balance data to gain fresh trading impetus.
USD/CHF additional levels
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