USD/CHF fades bounce off intraday low near 0.8950 as US Retail Sales, debt ceiling negotiations loom

  • USD/CHF retreats from intraday high, stays defensive after reversing from two-week top the previous day.
  • Market sentiment turns sluggish as traders await US debt ceiling talks, Retail Sales data.
  • Recently downbeat US data, mixed Fedspeak favor Swiss Franc buyers.

USD/CHF remains pressured near 0.8950 and prints minor losses while reversing from the intraday high during a two-day downtrend to early Tuesday. In doing so, the Swiss Franc (CHF) pair cheers the US Dollar’s downbeat performance amid the market’s cautious mood ahead of the key data and events.

That said, the US Dollar Index (DXY) drops to 102.40 as it defends the week-start pullback from the monthly high. With this, the greenback’s gauge versus six major currencies bears the burden of the softer US data and mixed Federal Reserve (Fed) commentary even as challenges to sentiment put a floor under the DXY.

Monday’s NY Empire State Manufacturing Index for May marked the biggest fall since April 2020, to -31.8 for May. The same joins the downbeat signals from the US inflation numbers flashed the last week, as well as justifying the Federal Reserve’s (Fed) dovish hike, to weigh on the US Dollar and the USD/CHF price.

However, the Fed policymakers remain mostly hawkish despite not suggesting more rate hikes, which in turn puts a floor under the USD/CHF. On Monday, the Federal Reserve (Fed) signals have been mostly upbeat as Atlanta Fed President Raphael Bostic told CNBC on Monday that there is still a long distance to go on inflation and added that they may have to "go up on rates," as reported by Reuters. On the contrary, Chicago Federal Reserve Bank President Austan Goolsbee said in an interview with CNBC on Monday that a lot of impact of rate hikes is still in the pipeline. Furthermore, Minneapolis Fed President Neel Kashkari stated that signaled that the Fed has a long way to go to get inflation to 2.0%.

On a different page, the White House announced a meeting between President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy to overcome the looming US default. Ahead of the event, the US policymakers appear somewhat optimistic about extending the debt ceiling limit before the June expiry, which in turn weighed on the USD/CHF. However, the latest comments from United States House Speaker Kevin McCarthy saying, “I don’t think we’re in a good place,” seem to favor the US Dollar, via fears of deadlock on the US debt ceiling extension as Republicans may stick to their demand.

Amid these plays, S&P 500 Futures print mild losses even as Wall Street closed positive and the yields remain pressured, which in turn shows the market’s indecision and awaits the important data/events for clear directions.

Moving on, US Retail Sales for April, expected at 0.7% MoM versus -0.6% prior, will be the first to entertain USD/CHF traders ahead of the key US debt ceiling negotiations. Should the US policymakers offer a positive surprise to the markets, the odds of witnessing a slump in the US Dollar can’t be ruled out.

Technical analysis

Despite reversing from a one-month-old descending resistance line, around 0.8985 by the press time, the USD/CHF pair’s short-term downside remains elusive unless it breaks the one-week-old rising support line, close to 0.8920 by the press time.


Today last price 0.8951
Today Daily Change -0.0006
Today Daily Change % -0.07
Today daily open 0.8957
Daily SMA20 0.8922
Daily SMA50 0.9062
Daily SMA100 0.9161
Daily SMA200 0.9412
Previous Daily High 0.8988
Previous Daily Low 0.8943
Previous Weekly High 0.8988
Previous Weekly Low 0.8868
Previous Monthly High 0.9198
Previous Monthly Low 0.8852
Daily Fibonacci 38.2% 0.896
Daily Fibonacci 61.8% 0.8971
Daily Pivot Point S1 0.8937
Daily Pivot Point S2 0.8917
Daily Pivot Point S3 0.8892
Daily Pivot Point R1 0.8982
Daily Pivot Point R2 0.9008
Daily Pivot Point R3 0.9027



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

EUR/USD slides to multi-month lows below 1.0650

EUR/USD slides to multi-month lows below 1.0650

EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.


GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends losses and trades at fresh multi-month lows below 1.2450 even after the January month UK GDP was revised higher to 0.3%. The negative shift seen in risk mood fuels another leg higher in the USD and drags the pair lower.


Gold advances to new historic high above $2,400

Gold advances to new historic high above $2,400

Gold gathers bullish momentum ahead of the weekend and trades at a new record high above $2,400. Escalating geopolitical tensions help XAU/USD continue to push up despite the broad-based US Dollar strength.

Gold News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Rich Dad Poor Dad author Robert Kiyosaki says he will not buy Bitcoin ETFs. Kiyosaki stated his dislike for Wall Street’s financial products and preferred packaging his own. 

Read more

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more Premium

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more

US Retail Sales data will provide an updated snapshot of the health of the economy. Chinese GDP may confirm the narrative that Beijing's stimulus is working. UK inflation data may push the Bank of England to early rate cuts.

Read more