USD/CHF climbs to fresh multi-week high, around mid-0.9800s amid stronger USD

USD/CHF gained traction for the ninth straight day and shot to a nearly four-week high.
Aggressive Fed rate hike bets pushed the USD to a 20-year high and remained supportive.
The risk-off mood did little to benefit the safe-haven CHF or hinder the strong move up.

Haresh Menghani FXStreet

The USD/CHF pair built on the previous day's bullish breakout momentum through the 0.9800 mark and gained follow-through traction on Tuesday. This marked the ninth straight day of a positive move and pushed spot prices to a nearly four-week high, around mid-0.9800s during the early part of the European session.

With the latest leg up, the USD/CHF pair has rallied over 350 pips from sub-0.9500 levels touched on June 29 and the strong move up was sponsored by relentless US dollar buying. Expectations that the Fed would retain its aggressive policy tightening path continued underpinning the USD and pushed it to a fresh 20-year high.

The FOMC minutes released last week emphasized the need to fight inflation even if it results in an economic slowdown and reaffirmed hawkish Fed expectations. Adding to this, policymakers indicated that another 50 or 75 bps rate hike is likely at the upcoming FOMC meeting in July, which, in turn, favours the USD bulls.

The prospects for a further rise in interest rates, along with the ongoing Russia-Ukraine war and the latest COVID-19 outbreak in China, have been fueling recession fears. This, in turn, weighed on investors' sentiment, though did little to benefit the safe-haven Swiss franc or hinder the USD/CHF pair's positive move.

The price action supports prospects for a further near-term appreciating move, though traders might prefer to wait for the release of the US consumer inflation figures on Wednesday. In the meantime, the USD price dynamics would play a key role in influencing the USD/CHF pair amid absent relevant economic data from the US.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9847
Today Daily Change	0.0013
Today Daily Change %	0.13
Today daily open	0.9834

Trends
Daily SMA20	0.9682
Daily SMA50	0.9741
Daily SMA100	0.9552
Daily SMA200	0.9382

Levels
Previous Daily High	0.9843
Previous Daily Low	0.9764
Previous Weekly High	0.9798
Previous Weekly Low	0.9562
Previous Monthly High	1.005
Previous Monthly Low	0.9495
Daily Fibonacci 38.2%	0.9813
Daily Fibonacci 61.8%	0.9794
Daily Pivot Point S1	0.9784
Daily Pivot Point S2	0.9734
Daily Pivot Point S3	0.9705
Daily Pivot Point R1	0.9863
Daily Pivot Point R2	0.9893
Daily Pivot Point R3	0.9942

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD struggles near 0.7100 ahead of RBA Bullock's speech

AUD/USD stays defensive near 0.7100 in the Asian session on Tuesday, shrugging off hawkish comments from RBA Assistant Governor Sarah Hunter as traders keenly await a speech from RBA Governor Michele Bullock. Meanwhile, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, weighing on the pair. The crucial Trump-Xi summit is later this week and remains in focus.

USD/JPY holds small gains near 157.50 as JPY intervention risks loom

USD/JPY posts modest gains while trading near 157.50 in the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. Meanwhile, the US Dollar retains a bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, providing tailwinds for the pair.

Gold benefits from falling US bond yields; remains below $4,400 amid bullish USD

Gold regains positive traction during the Asian session on Tuesday, though it lacks bullish conviction and remains below $4,400. Falling oil prices ease inflation fears, dragging US bond yields lower and supporting the non-yielding yellow metal. Meanwhile, the Fed's hawkish stance, along with escalating Middle East tensions, keeps the US Dollar near its highest level since late July and acts as a headwind for the bullion.

Ethereum rallies above $2,700 as investors shrug off bearish sentiment

Ethereum (ETH) climbed above $2,700 on Monday after investors defended the realized price level despite negative sentiment over the Clarity Act's failure and the Federal Reserve rate hike. After the Clarity Act failed to advance in the Senate, ETH dipped below $2,400 last week. But right below that price is the top altcoin's realized price, or average on-chain cost basis, at $2,310.

Iranian President will head to New York for UN meeting

President Masoud Pezeshkian will lead an Iranian delegation at the United Nations General Assembly in New York on Tuesday, amid renewed hopes for a diplomatic solution to the Middle East conflict, CNBC reported on Monday. A high-ranking Iranian delegation, including Foreign Minister Abbas Araghchi, will accompany President Pezeshkian.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.