USD/CHF falls for the third session near 0.8830, FOMC minutes awaited


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  • USD/CHF moves on a downward trajectory on improved risk appetite.
  • Downbeat US CPI for October leads investors to view rate cuts in 2024.
  • Swiss Franc receives strength on the possibility of more interest rate hikes by SNB.

USD/CHF pair faces challenges for the third consecutive day, possibly influenced by improved risk appetite and indications of a cooling labor market, as investors anticipate a dovish stance from the Federal Reserve (Fed). During the Asian session on Tuesday, the pair trades around 0.8830.

The softer Consumer Price Index (CPI) in the United States (US) for October has prompted investors to reconsider the possibility of a rate hike by the Fed at the December meeting and contemplate potential rate cuts in 2024. According to the latest report from the US Bureau of Labor Statistics, the US CPI decelerated to 3.2% (YoY), below the consensus of 3.3% and down from the previous reading of 3.7%. The Core CPI eased to 4.0% (YoY), slightly below the previous figure of 4.1%, which was expected to remain unchanged.

Swiss National Bank (SNB) Chairman Thomas Jordan's hawkish comments, where he does not rule out the possibility of more interest rate hikes in the future, continue to support and underpin the strength of the Swiss Franc (CHF). Furthermore, Swiss Industrial Production (YoY) for the third quarter exceeded expectations, coming in at 2.0%, a significant improvement from the previous quarter's -0.7% (Revised from -0.8%), reported by Swiss Statistics. This positive trend is considered inflationary and may have contributed to undermining the USD/CHF pair.

On Tuesday, Swiss Import and Export data are set to be released, adding to market developments. Traders will shift their focus on pivotal US economic indicators such as Existing Home Sales and the Chicago Fed National Activity Index. Furthermore, FOMC meeting minutes may provide insights into the decision-making process of the Federal Reserve (Fed) committee regarding interest rates.

USD/CHF: Technical levels to watch

Overview
Today last price 0.8832
Today Daily Change -0.0017
Today Daily Change % -0.19
Today daily open 0.8849
 
Trends
Daily SMA20 0.898
Daily SMA50 0.902
Daily SMA100 0.8898
Daily SMA200 0.899
 
Levels
Previous Daily High 0.8866
Previous Daily Low 0.8826
Previous Weekly High 0.9052
Previous Weekly Low 0.8853
Previous Monthly High 0.9244
Previous Monthly Low 0.8888
Daily Fibonacci 38.2% 0.8841
Daily Fibonacci 61.8% 0.885
Daily Pivot Point S1 0.8828
Daily Pivot Point S2 0.8808
Daily Pivot Point S3 0.8789
Daily Pivot Point R1 0.8868
Daily Pivot Point R2 0.8886
Daily Pivot Point R3 0.8907

 

 

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