USD/CHF clings to gains above mid-0.8900s, lacks follow-through ahead of US CPI

  • A combination of factors assisted USD/CHF to move further away from multi-month lows.
  • A modest pickup in the US bond yields underpinned the USD and remained supportive.
  • Investors seemed reluctant to place any aggressive bets ahead of the latest US CPI report.

The USD/CHF pair traded with a mild positive bias through the first half of the European session and was last seen hovering near daily tops, around the 0.8960-65 region.

The pair built on the previous day's bounce from the 0.8925 zone, or near four-month lows and gained some follow-through traction on Thursday. The uptick was supported by a modest US dollar strength and a generally positive tone around the equity markets, which tends to undermine the safe-haven Swiss franc.

The US dollar edged higher amid some repositioning trade ahead of the US consumer inflation figures for May, due later during the early North American session. Apart from this, a modest pickup in the US Treasury bond yields further benefitted the greenback. This, in turn, acted as a tailwind for the USD/CHF pair.

The uptick, however, lacked any strong follow-through buying as investors seemed reluctant to place any aggressive bets ahead of the key US CPI report. This will be an important macro data that would set the tone for the June FOMC meeting, which will influence the USD and provide a fresh directional impetus to the USD/CHF pair.

In the meantime, the combination of factors might continue to lend support to the USD/CHF pair. Hence, any meaningful dip is more likely to be bought into and remain limited, at least for the time being.

Technical levels to watch


Today last price 0.8963
Today Daily Change 0.0007
Today Daily Change % 0.08
Today daily open 0.8956
Daily SMA20 0.8991
Daily SMA50 0.9104
Daily SMA100 0.9108
Daily SMA200 0.9072
Previous Daily High 0.8972
Previous Daily Low 0.8926
Previous Weekly High 0.9054
Previous Weekly Low 0.8947
Previous Monthly High 0.9165
Previous Monthly Low 0.893
Daily Fibonacci 38.2% 0.8944
Daily Fibonacci 61.8% 0.8954
Daily Pivot Point S1 0.8931
Daily Pivot Point S2 0.8906
Daily Pivot Point S3 0.8885
Daily Pivot Point R1 0.8976
Daily Pivot Point R2 0.8997
Daily Pivot Point R3 0.9022



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