USD/CHF holds ground above 0.8900, focus on US headline CPI

USD/CHF trades higher around 0.8910 on the back of Greenback’s recovery.
US inflation is expected to appreciate; any deviation could influence the sentiment toward the pair.
BoJ Governor Kazuo Ueda’s hawkish remarks contributed to USD weakness.

Akhtar Faruqui FXStreet

USD/CHF struggles to recover from the previous day’s losses ahead of the release of the US Consumer Price Index (CPI), treading waters around 0.8910 during the early trading hours of the European session on Tuesday. The pair experienced downward pressure due to the lackluster performance of the US Dollar (USD) on Monday.

Additionally, the USD/CHF pair struggled, primarily influenced by the positive data from China, particularly a return to positive inflation territory. Furthermore, hawkish remarks from Bank of Japan (BoJ) Governor Kazuo Ueda contributed to USD weakness.

US Dollar Index (DXY), which measures the performance of the US Dollar (USD), beats higher at around 104.70. The Greenback is recovering losses due to the positive performance of United States (US) bond yields.

Nevertheless, the US Dollar (USD) bulls adopt a cautious stance ahead of the release of the significant US Consumer Price Index (CPI) data scheduled for Wednesday. This data release has the potential to influence market sentiment and impact the pair.

The market expects the headline Consumer Price Index (CPI) to show a 0.5% month-on-month increase, representing an improvement from the previous period's 0.2% reading. While Core CPI figures are anticipated to stay unchanged at 0.2%.

It is worth noting that any deviations from these inflation figures have the potential to trigger rapid changes in market sentiment and influence the bias towards the US Dollar (USD).

The Greenback is projected to maintain its strength by effectively absorbing the impacts of higher interest rates. Furthermore, the currency could receive additional support from positive economic data coming out of the US.

USD/CHF: additional important levels

Overview
Today last price	0.891
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	0.8909

Trends
Daily SMA20	0.8838
Daily SMA50	0.8776
Daily SMA100	0.8879
Daily SMA200	0.9051

Levels
Previous Daily High	0.893
Previous Daily Low	0.8897
Previous Weekly High	0.8945
Previous Weekly Low	0.8833
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.891
Daily Fibonacci 61.8%	0.8917
Daily Pivot Point S1	0.8894
Daily Pivot Point S2	0.8879
Daily Pivot Point S3	0.8861
Daily Pivot Point R1	0.8927
Daily Pivot Point R2	0.8945
Daily Pivot Point R3	0.8959

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.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.