USD/CHF holds gains near 0.8970 with focus on US Inflation and Fed policy


  • USD/CHF remains firm near 0.8970 as waning Fed rate-cut prospects boost the US Dollar’s appeal.
  • The Fed is expected to maintain a hawkish narrative on the interest rate guidance due to slower progress in disinflation.
  • The SNB will be less likely to continue the rate-cut spell on June 20.

The USD/CHF pair clings to gains near 0.8970 in Monday’s early European session. The Swiss Franc asset remains firm as the US Dollar (USD) strengthens after traders unwind Federal Reserve (Fed) rate-cut bets for the September meeting.

Dovish prospects for the Fed’s September policy meeting diminished significantly after the US Nonfarm Payrolls (NFP) report for May showed that the labor demand remained robust and wage growth was stronger than expected. The maintenance of interest rates at their current levels by the Fed is favorable when labor market conditions appear to be strong.

Meanwhile, a sharp decline in Fed rate-cut bets has turned market sentiment risk-averse. S&P 500 futures have posted some losses in the early London session. The US Dollar Index (DXY) jumps to an almost four-week high near 105.27. 10-year US Treasury yields extend their upside to 4.45%.

Going forward, investors will focus on the US Consumer Price Index (CPI) data for May and the Fed’s interest rate policy, which are scheduled for Wednesday. Annual core inflation that strips off volatile food and energy prices is estimated to have decelerated to 3.5% from the prior release of 3.6%, with headline figures growing steadily by 3.4%.

The Fed is expected to remain status quo for the seventh time in a row. Investors will keenly focus on Fed’s guidance on the interest rates, which is likley to be hawkish as progress in the disinflation process appears to be slowed.

On the Swiss front, market expectations for the Swiss National Bank’s (SNB) rate-cut path will drive the next move in the Swiss Franc. The SNB is less-likely to deliver a subsequent interest rate-cut on June 20 though inflatuon remains beow the 2% threshold. Earlier, SNB Chairman Thomas J. Jordan cautioned about small upside risks to inflation expectations, which have been prompted by weak Swiss Franc that has made Swiss exports competitive in the global market.

USD/CHF

Overview
Today last price 0.8979
Today Daily Change 0.0013
Today Daily Change % 0.14
Today daily open 0.8966
 
Trends
Daily SMA20 0.9055
Daily SMA50 0.9079
Daily SMA100 0.894
Daily SMA200 0.8892
 
Levels
Previous Daily High 0.8973
Previous Daily Low 0.8881
Previous Weekly High 0.9036
Previous Weekly Low 0.8881
Previous Monthly High 0.9225
Previous Monthly Low 0.8988
Daily Fibonacci 38.2% 0.8938
Daily Fibonacci 61.8% 0.8916
Daily Pivot Point S1 0.8907
Daily Pivot Point S2 0.8849
Daily Pivot Point S3 0.8816
Daily Pivot Point R1 0.8999
Daily Pivot Point R2 0.9032
Daily Pivot Point R3 0.9091

 

 

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.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD accelerates losses to 1.0930 on stronger Dollar

EUR/USD accelerates losses to 1.0930 on stronger Dollar

The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.

EUR/USD News
GBP/USD plummets to four-week lows near 1.2850

GBP/USD plummets to four-week lows near 1.2850

The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.

GBP/USD News
Gold trades on the back foot, flirts with $3,000

Gold trades on the back foot, flirts with $3,000

Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.

Gold News
Can Maker break $1,450 hurdle as whales launch buying spree?

Can Maker break $1,450 hurdle as whales launch buying spree?

Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.

Read more
Strategic implications of “Liberation Day”

Strategic implications of “Liberation Day”

Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025