USD/CHF drops from above 0.9300 as US Dollar corrects, risk-off profile still solid

USD/CHF is struggling to capture 0.9300 despite downbeat market sentiment.
S&P500 faced intense selling pressure amid mounting recession risks.
SNB Jordan hiked interest rates by 50 bps, as expected, to 1% to keep inflation stable at around 2%.

Sagar Dua FXStreet

The USD/CHF pair has been struggling to sustain above the immediate hurdle of 0.9300 in the early Asian session. The Swiss Franc major asset witnessed a strong reversal in the New York session amid negative market sentiment, which improved the appeal for safe-haven assets. At the press time, the major has dropped to near 0.9276 but is expected to find support ahead.

S&P500 faced severe pressure on Thursday amid mounting recession risk as an interest rate peak projection above 5% is sufficient to create havoc among firms that are debt-laden. Also, companies would prefer to postpone their expansion plans to dodge higher interest obligations. No doubt, the United States Consumer Price Index (CPI) data has softened but the battle against stubborn inflation is far from over.

The US Dollar Index (DXY) has corrected marginally after a rally to near 104.80. The corrective move doesn’t seem to be a reversal for now and the USD Index may resume its upside journey ahead. Meanwhile, the 10-year US Treasury yields are continuously facing pressure and have dropped to near 3.45%.

The asset displayed some volatility on Thursday after the Swiss National Bank hiked its interest rates by 50 basis points (bps), as expected, to 1%. SNB Chairman Thomas J. Jordan is required to avoid sheer divergence in the policy rate with European Central Bank (ECB). Also, Switzerland's inflation rate is comfortably above 2%, which is needed to remain stable.

USD/CHF

Overview
Today last price	0.928
Today Daily Change	0.0043
Today Daily Change %	0.47
Today daily open	0.9237

Trends
Daily SMA20	0.9429
Daily SMA50	0.9703
Daily SMA100	0.9682
Daily SMA200	0.9647

Levels
Previous Daily High	0.9298
Previous Daily Low	0.9216
Previous Weekly High	0.9456
Previous Weekly Low	0.9312
Previous Monthly High	1.0148
Previous Monthly Low	0.9357
Daily Fibonacci 38.2%	0.9247
Daily Fibonacci 61.8%	0.9266
Daily Pivot Point S1	0.9202
Daily Pivot Point S2	0.9168
Daily Pivot Point S3	0.912
Daily Pivot Point R1	0.9284
Daily Pivot Point R2	0.9332
Daily Pivot Point R3	0.9366

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.