USD/CHF sees upside above 0.9570 as DXY advances, Fed Powell and US PCE eyed
|- USD/CHF is expected to surpass the intraday high at 0.9570 as the DXY is getting out of the woods.
- The DXY has attracted bids as odds of a hawkish commentary in Fed Powell’s speech have escalated.
- Investors will focus on US GDP, US PCE, and Swiss ZEW-Survey Expectations on Wednesday
The USD/CHF pair is aiming to surpass the critical resistance of 0.9570 as the US dollar index (DXY) has attempted an upside break of the consolidation formed in a narrow range of 104.36-104.50 in the Asian session. Earlier, the asset witnessed a responsive buying action after slipping near the critical support of 0.9550.
Bids have followed the DXY after remaining lackluster as bets over a hawkish commentary from Federal Reserve (Fed) chair Jerome Powell in his speech on Wednesday have advanced. Fed Powell is expected to sound hawkish as prior interest rate hikes by the Fed have failed to bring even a minor impact on the inflation rate in the US economy.
The Fed has already elevated its interest rates to 1.50-1.75% in its past three monetary policy meetings. Despite the back-to-back announcements of rate hikes and balance sheet reduction program, the inflation rate has climbed above 8.6%, recording its every highest four-decade figure.
In addition to Fed Powell’s speech, investors’ focus will remain on the US Personal Consumption Expenditure (PCE) and Gross Domestic Product (GDP) numbers. As per the market consensus, the US PCE will remain stable at 7% on an annual basis. Also, the US GDP figure is expected to remain unchanged at -1.5% for the first quarter of CY 2022.
On the Swiss franc front, ZEW Survey- Expectations will be keenly watched. As per the market consensus, the economic data could decline to -70.7 vs. -52.6 recorded earlier. A higher-than-expected figure will strengthen the Swiss franc bulls against the greenback.
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.