USD/CHF grapples to surpass 0.8900 ahead of US ISM Services PMI release

USD/CHF treads waters to surpass the 0.8900 psychological level.
US-China trade tension could reinforce the appeal of the safe-haven Swiss Franc (CHF).
Investors await US PMI data, seeking fresh impetus on the inflation outlook.

Akhtar Faruqui FXStreet

USD/CHF holds ground near 0.8900 during the European session on Wednesday, treading waters to extend gains for the second successive day. The strength in the US Dollar (USD) contributes support to underpin the USD/CHF pair as investors expect the Federal Reserve (Fed) to keep interest rates at a higher level for a prolonged period.

Additionally, the financial markets are factoring in the odds for a 25 basis points (bps) interest rate hike by the end of the year 2023. This optimistic stance continues to support the US Treasury yields, bolstering the confidence of Greenback’s bulls.

The resurgence of trade tensions between the US and China could potentially reinforce the appeal of the traditional safe-haven Swiss Franc (CHF) and act as headwinds for the USD/CHF pair. US Commerce Secretary Gina Raimondo expects no revisions to the US tariffs on China, which were imposed during Trump's administration until the ongoing review by the US Treasury Office is completed.

US Dollar Index (DXY) hovers around 104.70, which measures the value of the US Dollar (USD) against the six other major currencies. The 10-year US bond yield rose to 4.25%, up by 1.66%, which underpinned the strength in the US Dollar (USD).

Investors will likely watch the upcoming economic data from the United States (US). The release of the US ISM Services PMI for August and the US S&P Global PMIs during the North American session will carry substantial importance. These data releases will supply valuable insights into the present inflation scenario in the United States and may help provide a more distinct direction for the USD/CHF currency pair.

USD/CHF: additional important levels

Overview
Today last price	0.8898
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	0.8895

Trends
Daily SMA20	0.8809
Daily SMA50	0.878
Daily SMA100	0.888
Daily SMA200	0.9061

Levels
Previous Daily High	0.8903
Previous Daily Low	0.8842
Previous Weekly High	0.8865
Previous Weekly Low	0.8745
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.888
Daily Fibonacci 61.8%	0.8865
Daily Pivot Point S1	0.8857
Daily Pivot Point S2	0.8819
Daily Pivot Point S3	0.8796
Daily Pivot Point R1	0.8918
Daily Pivot Point R2	0.8941
Daily Pivot Point R3	0.8979

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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