USD/CHF edges higher to near 0.8450, awaits US data for fresh impetus

  • USD/CHF rises to near 0.8450 major level as the Greenback gains ground.
  • US-Houthi clash in the Red Sea could reinforce the demand for the Safe-haven Swiss Franc.
  • Traders are expected to adopt caution as recent US data indicated the slowing of the US economy.

USD/CHF has retraced its recent losses registered on Friday, trading higher near 0.8450 during the Asian session on Tuesday. The US Dollar (USD) receives upward support at the beginning of the year, with the US Dollar Index (DXY) edging above 101.50.

Given the recent decline in US labor data, Core PCE Inflation, and GDP Annualized, market participants are likely to exercise caution before making bids on the US Dollar (USD). These indicators support the notion that the US economy is slowing down in the fourth quarter, possibly heading towards a soft landing. This further reinforces the argument for Federal Reserve (Fed) rate cuts in 2024, exerting negative pressure on the USD.

The Chicago Purchasing Managers Index released by ISM-Chicago on Friday showed that business conditions in the Chicago region reduced to 46.9 in December from the previous 55.8, exceeding the market expectation of a 51.0 decline. ISM Manufacturing PMI figures and Meeting Minutes from the Federal Open Market Committee (FOMC) are scheduled to be released on Wednesday.

The naval clash in the Red Sea could fuel heightened risk aversion, which could increase the demand for the safe-haven Swiss Franc (CHF). Houthi militants attacked a Maersk container ship on Sunday, but the assault was thwarted by US helicopters. Following the incident, Iran sends a warship to the Red Sea. This situation raises the possibility of disruptions in the vital waterways for oil transportation, including the Red Sea and the Straits of Hormuz in the Gulf.

During the past week, the Swiss ZEW Survey – Expectations recorded a decline of 23.7 points in December, compared to the 29.6 decrease in November. On a surprising note, the KOF Swiss Leading Indicator improved to 97.8, surpassing the expected reading of 97.0. Looking ahead, the SVME Manufacturing Purchasing Managers Index (PMI) is scheduled for release on Wednesday, adding to the economic indicators to watch.

The Swiss National Bank (SNB) appears poised to adopt a proactive stance, as indicated in its recent Quarterly Bulletin. The bank has conveyed its readiness to actively intervene in the foreign exchange market to provide support for the Swiss Franc (CHF).

USD/CHF: additional technical levels

Today last price 0.8448
Today Daily Change 0.0034
Today Daily Change % 0.40
Today daily open 0.8414
Daily SMA20 0.8625
Daily SMA50 0.8799
Daily SMA100 0.8881
Daily SMA200 0.8899
Previous Daily High 0.8414
Previous Daily Low 0.8414
Previous Weekly High 0.858
Previous Weekly Low 0.8333
Previous Monthly High 0.8821
Previous Monthly Low 0.8333
Daily Fibonacci 38.2% 0.8414
Daily Fibonacci 61.8% 0.8414
Daily Pivot Point S1 0.8414
Daily Pivot Point S2 0.8414
Daily Pivot Point S3 0.8414
Daily Pivot Point R1 0.8414
Daily Pivot Point R2 0.8414
Daily Pivot Point R3 0.8414



Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content

Recommended content

Editors’ Picks

AUD/USD remains on the defensive near 0.6600 amid mixed Australian PMI, Chinese economic woes

AUD/USD remains on the defensive near 0.6600 amid mixed Australian PMI, Chinese economic woes

The AUD/USD pair trades in negative territory for the seventh consecutive day around 0.6610 on Wednesday during the early Asian session. The mixed flash Australia’s Judo Bank Purchasing Managers Index fails to boost the Aussie. Traders await the US preliminary S&P Global PMIs for June for fresh impetus. 


EUR/USD backslides in runup to key midweek data prints

EUR/USD backslides in runup to key midweek data prints

EUR/USD dipped one-third of one percent on Tuesday as investors knuckle down for the wait to a double-header of Purchasing Managers Index figures due from both the EU and the US on Wednesday.


Gold reconquers $2,400, lacks directional momentum

Gold reconquers $2,400, lacks directional momentum

Gold stages a rebound and trades above $2,400 on Tuesday after closing the fourth consecutive trading day in negative territory on Monday. The pullback seen in US Treasury bond yields help XAU/USD cling to modest daily gains despite the US Dollar's resilience.

Gold News

dYdX recovers compromised v3 platform hours after leaked sales attempt

dYdX recovers compromised v3 platform hours after leaked sales attempt

The dYdX team reported an attack on its decentralized exchange's version 3.0 platform on Tuesday. The breach came hours after a Bloomberg report revealed that the team could be planning to sell the v3 platform to intending buyers.

Read more

US S&P Global PMIs Preview: Economic expansion could struggle in July Premium

US S&P Global PMIs Preview: Economic expansion could struggle in July

On Wednesday, S&P Global will release advanced readings for the United States (US) Purchasing Managers Indexes (PMIs) for July, a monthly survey of business activity. The survey is anticipated to indicate that US economic activity in the private sector faced mixed trends during the current month.

Read more