USD/CHF holds ground above major level at 0.9000 ahead of US Retail Sales

USD/CHF continues to lose ground on the Fed’s interest rate uncertainty.
Safe-haven Swiss Franc receives flows due to the risk aversion over Middle-East conflict.
The recovery in US bond yields could limit losses of the US Dollar.

Akhtar Faruqui FXStreet

USD/CHF extends the losing streak on the second consecutive session, trading lower around 0.9020 during the Asian session on Monday. The uncertainty regarding the Federal Reserve's (Fed) future decisions on interest rates is contributing to a complex and fluctuating environment for the US Dollar (USD).

Furthermore, the Swiss Franc (CHF) seems to be receiving buying support amid the military conflict in the Middle East, as the currency is considered a safe haven during times of geopolitical uncertainty. Investors seeking refuge in a stable and secure currency may be contributing to the strength of the CHF in the current geopolitical landscape.

According to an undisclosed source cited by Reuters, discussions have taken place between US officials and Israel regarding the potential visit of President Joe Biden to Israel. The reported invitation for this visit comes from Israeli Prime Minister Benjamin Netanyahu.

On Friday, the Swiss Producer and Import Prices (YoY) recorded a 1.0% decline in September, an increase from the previous decline of 0.8%. Meanwhile, the monthly data indicated a decrease of 0.1%, contrasting with the 0.8% decline observed in August. Trade Balance for September will be released later in the week.

Multiple Fed officials signaled a potential delay in a rate hike for November due to the surge in bond yields, causing tightened financial conditions, is acting as a headwind for the USD/CHF pair.

The US Dollar (USD) faces challenges following the release of the preliminary US Michigan Consumer Sentiment Index for October on Friday, showing a decline to 63.0 from the previous reading of 68.1, falling short of the expected 67.4.

The US Dollar Index (DXY) trades slightly lower around 106.50. The recovery in US Treasury yields from recent losses may contribute to supporting the Greenback. The 10-year US Treasury bond yield stands at 4.67%, up by 1.37%, by the press time.

The upcoming release of US Retail Sales (MoM) on Tuesday is anticipated to show a 0.2% rise in September compared to the previous reading of 0.6%, and this data could influence market dynamics and the USD/CHF pair

USD/CHF: additional levels to watch

Overview
Today last price	0.902
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	0.9018

Trends
Daily SMA20	0.9093
Daily SMA50	0.894
Daily SMA100	0.8906
Daily SMA200	0.9022

Levels
Previous Daily High	0.9086
Previous Daily Low	0.9002
Previous Weekly High	0.9124
Previous Weekly Low	0.8987
Previous Monthly High	0.9225
Previous Monthly Low	0.8795
Daily Fibonacci 38.2%	0.9034
Daily Fibonacci 61.8%	0.9054
Daily Pivot Point S1	0.8985
Daily Pivot Point S2	0.8952
Daily Pivot Point S3	0.8901
Daily Pivot Point R1	0.9069
Daily Pivot Point R2	0.912
Daily Pivot Point R3	0.9153

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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