|

USD/CHF extends losses to near 0.9050 ahead of US inflation data

  • USD/CHF edges lower due to a decline in the US Dollar and lower US yields.
  • Fed Chair Jerome Powell has anticipated a sustained decrease in inflation, indicating diminished confidence in the disinflation outlook.
  • Swiss Producer and Import Prices dropped 1.8% in April, marking the twelfth consecutive period of decrease.

USD/CHF edges lower for the second successive session, trading around 0.9060 during the Asian hours on Wednesday. The decline of the USD/CHF pair could be attributed to the weaker US Dollar (USD) as investors shrugged off the higher-than-expected US Producer Price Index data for April. Investors will likely await the Consumer Price Index report scheduled for Wednesday.

The US Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) rose 0.5% MoM in April, surpassing the market expectations of a 0.3% increase. The producer prices have rebounded from March's contraction of 0.1%. Additionally, the Core PPI, which excludes volatile food and energy prices, also surged 0.5% month-over-month, exceeding projections of 0.2%.

Federal Reserve Chair Jerome Powell shared his views after the release of US PPI. According to a Reuters report, Powell has anticipated a continued decline in inflation and expressed less confidence in the disinflation outlook compared to previous assessments. He also highlighted that Gross Domestic Product (GDP) growth is expected to reach 2% or higher, attributing this positive forecast to the strength of the labor market.

In Switzerland, Producer and Import Prices (YoY) dropped 1.8% in April, marking a slight improvement from the preceding decline of 2.1%. This marks the twelfth consecutive period of decrease, albeit at the slowest rate since December 2023. On a monthly basis, the measure of consumer price inflation increased by 0.6%, following a 0.1% rise in the previous month.

Furthermore, traders are expected to closely monitor Industrial Production (YoY) for the first quarter, scheduled for release on Friday. This report will provide insights into the volume of production across industries such as factories and manufacturing in Switzerland.

USD/CHF

Overview
Today last price0.9055
Today Daily Change-0.0010
Today Daily Change %-0.11
Today daily open0.9065
 
Trends
Daily SMA200.9105
Daily SMA500.9022
Daily SMA1000.8845
Daily SMA2000.887
 
Levels
Previous Daily High0.9103
Previous Daily Low0.9055
Previous Weekly High0.9099
Previous Weekly Low0.9036
Previous Monthly High0.9195
Previous Monthly Low0.8998
Daily Fibonacci 38.2%0.9073
Daily Fibonacci 61.8%0.9085
Daily Pivot Point S10.9046
Daily Pivot Point S20.9027
Daily Pivot Point S30.8998
Daily Pivot Point R10.9094
Daily Pivot Point R20.9122
Daily Pivot Point R30.9141

Author

Akhtar Faruqui

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.

More from Akhtar Faruqui
Share:

Editor's Picks

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary. 

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.