USD/CHF gains traction above 0.9100 ahead of US PPI data

USD/CHF gains momentum near 0.9125 on Thursday.
The headline US CPI rose 0.4% MoM in March, while the yearly CPI figure advanced 3.5% YoY, hotter than expected.
The uncertainty and ongoing geopolitical tensions in the Middle East might lift the CHF and cap the pair’s upside.

Lallalit Srijandorn FXStreet

The USD/CHF pair trades on a positive note near 0.9125, the highest level since October 2023 on Thursday during the early European session. The hotter-than-expected US inflation in March has prompted investors to scale back bets on US interest rate cuts this year, which provides some support to the Greenback. However, the ongoing geopolitical tensions in the Middle East might boost safe-haven assets like the Swiss Franc (CHF).

An unexpected rise in US Consumer Price Index (CPI) data in March pushed out the expected timing of a first-rate cut to September from June. The headline CPI rose 0.4% MoM in March, while the yearly CPI figure advanced 3.5% YoY. Meanwhile, the Core CPI, excluding volatile food and energy components, climbed 0.4% MoM, while jumping 3.8% from a year ago.

Furthermore, Minutes of the last Fed meeting suggested that participants were worried about elevated inflation and the recent data did not help the Fed gain confidence that inflation moved sustainably towards the 2% target. The higher-for-longer US rate narrative lifts the USD and creates a tailwind for the USD/CHF pair.

On the other hand, the uncertainty surrounding ceasefire talks between Israel and Hamas and the ongoing geopolitical tensions in the Middle East might boost safe-haven flows, benefiting the Swiss Franc (CHF). Israeli foreign minister Israel Kat warned on Wednesday that Israel will retaliate if Iran attacks from its territory. Earlier, Iran's supreme leader said Israel "must be punished" for an apparent attack on an Iranian consulate building in Syria last week.

USD/CHF

Overview
Today last price	0.9128
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	0.9129

Trends
Daily SMA20	0.8988
Daily SMA50	0.8865
Daily SMA100	0.8749
Daily SMA200	0.8822

Levels
Previous Daily High	0.9148
Previous Daily Low	0.9025
Previous Weekly High	0.9096
Previous Weekly Low	0.8998
Previous Monthly High	0.9072
Previous Monthly Low	0.873
Daily Fibonacci 38.2%	0.9101
Daily Fibonacci 61.8%	0.9072
Daily Pivot Point S1	0.9053
Daily Pivot Point S2	0.8977
Daily Pivot Point S3	0.893
Daily Pivot Point R1	0.9176
Daily Pivot Point R2	0.9223
Daily Pivot Point R3	0.9299

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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