USD/CHF floats around 0.8520 with a positive bias on a slightly improved US Dollar

USD/CHF could advance further on a risk aversion sentiment.
US Dollar takes a breather, coasting along as US Treasury yields lack a clear direction.
The recent Swiss economic data supports the sentiment in favor of the Swiss Franc.

Akhtar Faruqui FXStreet

USD/CHF stays calm after gaining profits in the previous session, hovering near 0.8520 during the Asian session on Wednesday. The US Dollar Index (DXY) maintains its position above 102.50 amid steady US bond yields, with the 2-year and 10-year yields standing at 4.35% and 4.02%, respectively.

The risk-on sentiment was triggered by the Atlanta Federal Reserve President Raphael W. Bostic’s remarks made earlier this week, speculating interest rate cuts by the end of 2024. This has exerted downward pressure on the US Dollar. Bostic mentioned that inflation has declined more than initially anticipated and expressed the view of expecting two quarter-point cuts by the end of 2024.

However, the market sentiment has shifted to risk aversion, prompting investors to turn back towards the US Dollar and contributing upward support to underpinning the USD/CHF pair. Furthermore, December's Consumer Price Index (CPI) data from the United States will be eyed on Thursday.

On the other side, Monday’s economic data from Switzerland supported the Swiss Franc (CHF) to gain profits. Consumer Price Index (YoY) for December extended the growth from 1.4% to 1.7%. Real Retail Sales improved to 0.7% against the expected reading of flat 0.0%. On Tuesday, the seasonally adjusted Unemployment Rate rose to 2.2% from the previous rate of 2.1%.

Moreover, the Swiss National Bank (SNB) anticipates an annual loss of approximately 3 billion CHF for the last year. This outcome is attributed to the significant strength of the Swiss Franc (CHF), which has offset capital gains from the bank's equity and bond portfolios in foreign currencies.

USD/CHF: technical levels to watch

Overview
Today last price	0.8526
Today Daily Change	0.0003
Today Daily Change %	0.04
Today daily open	0.8523

Trends
Daily SMA20	0.8546
Daily SMA50	0.8738
Daily SMA100	0.8863
Daily SMA200	0.888

Levels
Previous Daily High	0.8532
Previous Daily Low	0.8464
Previous Weekly High	0.8578
Previous Weekly Low	0.8399
Previous Monthly High	0.8821
Previous Monthly Low	0.8333
Daily Fibonacci 38.2%	0.8506
Daily Fibonacci 61.8%	0.849
Daily Pivot Point S1	0.8481
Daily Pivot Point S2	0.8439
Daily Pivot Point S3	0.8413
Daily Pivot Point R1	0.8549
Daily Pivot Point R2	0.8575
Daily Pivot Point R3	0.8617

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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