Swiss Franc extends declines, USD/CHF set for a fifth straight gain on Friday


  • The CHF is broadly lower on the week, sending USD/CHF into a fresh six-week high.
  • Switzerland Producer and Import Prices slipped further in December.
  • SNB’S Jordan: appreciating Franc threatens Swiss inflation stability.

The Swiss Franc (CHF) slid further on Friday, extending recent losses as the market walks back a massive dogpile into the Swiss currency. The USD/CHF has climbed around 4.5% from December’s late low of 0.8332, a 12-year low for the pair.

Switzerland enjoys an economic environment massively different from its immediate European neighbors, with inflation already well within the Swiss National Bank’s (SNB) 2% maximum target and a stubbornly-healthy domestic economy.

The CHF gained significant value through 2023, climbing nearly 18% bottom-to-top against the US Dollar (USD) from 2022’s Q3 USD/CHF peak of 1.1047. With the popular CHF outrunning valuations and hampering the SNB’s ability to fine-tune policy using foreign currency reserves, the SNB flashed a warning to broader markets recently that if the CHF continues to appreciate, it will begin to transfer disinflationary pressure directly into the Swiss economy.

Having battled a disinflation cycle in the past, the SNB is in no rush to find itself mired in the same scenario again. Markets have apparently heeded SNB Chairman Thomas Jordan’s call for the time being, setting the USD/CHF on pace for its single-best weekly performance since late 2022.

USD/CHF Technical Outlook

The US Dollar is up around 1.85% against the Swiss Franc this week, climbing from Monday’s early bids near 0.8525, tapping the 0.8700 handle on Friday heading into the week’s closing bell.

The USD/CHF is set for its first technical challenge since finding the floor in late December, with the pair pushing directly into technical resistance from the 50-day Simple Moving Average (SMA) in the back half of the week’s trading.

A further technical ceiling is priced in at the 200-day SMA near 0.8850, with near-term technical barriers at the 0.880 handle where the pair last caught a swing high.

USD/CHF Hourly Chart

USD/CHF Daily Chart

USD/CHF

Overview
Today last price 0.8693
Today Daily Change 0.0010
Today Daily Change % 0.12
Today daily open 0.8683
 
Trends
Daily SMA20 0.852
Daily SMA50 0.8677
Daily SMA100 0.8847
Daily SMA200 0.8865
 
Levels
Previous Daily High 0.8694
Previous Daily Low 0.8633
Previous Weekly High 0.8566
Previous Weekly Low 0.846
Previous Monthly High 0.8821
Previous Monthly Low 0.8333
Daily Fibonacci 38.2% 0.8671
Daily Fibonacci 61.8% 0.8656
Daily Pivot Point S1 0.8646
Daily Pivot Point S2 0.8609
Daily Pivot Point S3 0.8585
Daily Pivot Point R1 0.8707
Daily Pivot Point R2 0.8731
Daily Pivot Point R3 0.8768

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Gains look capped near 0.6800

AUD/USD: Gains look capped near 0.6800

AUD/USD lost ground for the third session in a row and revisited the 0.6720-0.6715 band following the generalized bearish performance of commodities and ahead of the key release of the Australian labour market report.

AUD/USD News

EUR/USD keeps the bid tone in place ahead of ECB

EUR/USD keeps the bid tone in place ahead of ECB

EUR/USD added to Tuesday’s advance and rose to new highs around 1.0950 in response to extra weakness in the Greenback and rising expectations prior to the ECB gathering on Thursday.

EUR/USD News

Gold retreats from record highs, retains the bullish stance

Gold retreats from record highs, retains the bullish stance

Gold trades flat on the day below $2,470 after touching a new record high above $2,480 in the Asian session on Wednesday. The modest recovery seen in the US Treasury bond yields causes XAU/USD to consolidate its gains.

Gold News

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum is down 1% on Wednesday as issuers began filing their final spot ETH ETF S-1 drafts with the SEC in anticipation of a launch on July 23. Meanwhile, SEC commissioner Hester Peirce also said the regulator may reconsider its position on ETH staking within the ETFs.

Read more

Australian Unemployment Rate seen steady at 4% in June

Australian Unemployment Rate seen steady at 4% in June

With sentiment dominating financial markets, the Australian Bureau of Statistics will release the monthly employment report on Thursday at 1:30 GMT. The country is expected to have added 20K new positions in June, while the Unemployment Rate is foreseen to remain steady at 4%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures