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USD/CHF drops to near 0.9000 due to dovish sentiment surrounding the Fed

USD/CHF extends losses due to growing expectations of multiple rate cuts by the Fed in 2024.
Fed’s Neel Kashkari said that the US Fed should maintain policy rates at their current level for longer.
Traders await Swiss Industrial Production (Q1) due on Friday, seeking fresh impetus on manufacturing conditions in the country.

Akhtar Faruqui FXStreet

USD/CHF continues its losing streak, hovering around 0.9000 during the European trading session on Thursday. The pair received pressure as the US Dollar (USD) struggled due to growing expectations of multiple rate cuts by the Federal Reserve (Fed) in 2024.

This dovish sentiment surrounding the Fed was bolstered after the release of the lower-than-expected monthly Consumer Price Index (CPI) and Retail Sales data from the United States (US). US CPI decelerated to 0.3% month-over-month in April and came in at a lower-than-expected 0.4% reading. While Retail Sales flattened, falling short of the expected increase of 0.4%.

However, Minneapolis Federal Reserve Bank President Neel Kashkari remarked on Wednesday that the US Fed should maintain policy rates at their current level "for a while longer until they ascertain the direction of underlying inflation."

On the Swiss front, Producer and Import Prices (YoY) decreased by 1.8% in April, showing a slight improvement from the previous decline of 2.1%. This marked the twelfth consecutive period of decrease, albeit at the slowest rate since December 2023.

Furthermore, traders are anticipated to closely observe Industrial Production (YoY) for the first quarter, set to be released on Friday. This report will offer insights into the volume of production across various sectors, including factories and manufacturing, in Switzerland.

USD/CHF

Overview

Today last price

0.9

Today Daily Change

-0.0022

Today Daily Change %

-0.24

Today daily open

0.9022

Trends

Daily SMA20

0.9101

Daily SMA50

0.9026

Daily SMA100

0.8851

Daily SMA200

0.8871

Levels

Previous Daily High

0.9071

Previous Daily Low

0.9015

Previous Weekly High

0.9099

Previous Weekly Low

0.9036

Previous Monthly High

0.9195

Previous Monthly Low

0.8998

Daily Fibonacci 38.2%

0.9036

Daily Fibonacci 61.8%

0.905

Daily Pivot Point S1

0.9001

Daily Pivot Point S2

0.898

Daily Pivot Point S3

0.8945

Daily Pivot Point R1

0.9057

Daily Pivot Point R2

0.9092

Daily Pivot Point R3

0.9113

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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