USD/CHF attempts to extend gains above 0.8900, focus on US CPI

USD/CHF consolidates above the previous gains ahead of US economic data.
The rebound in US bond yields and market caution lift the US Dollar.
Elevated inflation figures could further reinforce the potential of the pair.

Akhtar Faruqui FXStreet

USD/CHF trades sideways around 0.8920 during the early trading hours of the European session on Wednesday, attempting to extend gains on the second day. The pair is experiencing upward support due to the recovery in the US Dollar (USD).

US Dollar Index (DXY) retraces the losing streak, which assesses the performance of the US Dollar (USD) against a basket of the other major six currencies. Spot price beats higher at around 104.80.

Additionally, the improved US Treasury yields contributed support to underpin the USD/CHF pair, coupled with the market caution ahead of the release of Consumer Price Index (CPI) data from the United States (US). The yield on the US 10-year bond improved to 4.29% at the time of writing.

Higher inflation figures would be an added factor to the prevailing hawkish sentiment surrounding the odds of further monetary tightening by the US Federal Reserve (Fed) through the end of the year 2023.

Moreover, the expectation that the Fed will keep interest rates at higher levels for an extended period can help the Greenback to maintain higher levels. The USD strength can be attractive to bulls.

US CPI is expected to exhibit a 0.5% month-on-month improvement from the previous month's reading of 0.2%. Moreover, the Core CPI figure is anticipated to remain steady at 0.2%. These figures may provide a clearer picture of inflation scenarios in the US economy and can have a significant impact on market sentiment and trading decisions about the USD/CHF pair.

USD/CHF: additional important levels

Overview
Today last price	0.8918
Today Daily Change	0.0005
Today Daily Change %	0.06
Today daily open	0.8913

Trends
Daily SMA20	0.8845
Daily SMA50	0.8775
Daily SMA100	0.8879
Daily SMA200	0.9048

Levels
Previous Daily High	0.8934
Previous Daily Low	0.8902
Previous Weekly High	0.8945
Previous Weekly Low	0.8833
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.8922
Daily Fibonacci 61.8%	0.8914
Daily Pivot Point S1	0.8899
Daily Pivot Point S2	0.8884
Daily Pivot Point S3	0.8866
Daily Pivot Point R1	0.8931
Daily Pivot Point R2	0.8949
Daily Pivot Point R3	0.8963

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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