- The pair trades near 0.8360, struggling to find a clear direction.
- US retail sales rise 0.1% in April, slightly beating expectations.
- Swiss economy expands by 0.7% in Q1, supported by robust services growth.
USD/CHF remains pressured near the 0.8360 level on Thursday, extending its consolidation within this week’s range. The pair is struggling to gain traction amid mixed US economic data and a resilient Swiss economy.
In the United States, retail sales for April rose by 0.1% to $724.1 billion, slightly above market expectations for no change, while the prior month’s data was revised higher to 1.5% from 1.4%. However, the Producer Price Index (PPI) for final demand rose by just 2.4% year-over-year, falling below the 2.5% forecast and down from 2.7% in March. This marks a significant slowdown in factory gate inflation, raising concerns about weakening price pressures. The softer inflation figures have reinforced expectations that the Federal Reserve (Fed) may need to ease policy further, pushing down the US Dollar Index (DXY) below the 101.00 mark.
Meanwhile, Switzerland’s economy grew by 0.7% in the first quarter, accelerating from a revised 0.5% expansion in Q4 2024. This marked the strongest quarterly growth since early 2023, driven primarily by the services sector. However, inflationary pressures remain subdued, with the nation’s producer and import prices falling by 0.5% year-over-year in April, deeper than the 0.1% decline in March, reflecting persistent deflationary trends.
Technical Analysis
USD/CHF trades near the 0.8360 mark, struggling to gain bullish momentum despite a modest recovery in US retail sales. The pair remains below the 20-day Exponential Moving Average (EMA) at 0.8385, a critical barrier for bulls. The 14-day Relative Strength Index (RSI) hovers around 45, reflecting mild bearish conditions, while the Moving Average Convergence Divergence (MACD) remains negative, supporting a near-term bearish outlook.
Immediate support levels are seen at 0.8350, followed by the psychological 0.8300 mark, while resistance lies at 0.8385 and 0.8400. A sustained break below 0.8350 could expose the pair to further downside towards the year-to-date low near 0.8280. On the upside, a close above 0.8400 is needed to shift the short-term bias back to neutral.
Daily Chart
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.
Recommended content
Editors’ Picks
USD/JPY holds gains near 145.00 ahead of BoJ policy decision
USD/JPY consolidates gains near the 145.00 mark early Tuesday as traders keenly await the latest BoJ monetary policy announcements for a fresh direction. In the meantime, no US-Japan trade deal reached at the G7 Summit undermines the Japanese Yen, lending support to the pair amid a US Dollar upswing.
AUD/USD retreats toward 0.6500 amid cautious mood
AUD/USD sustains the overnight late pullback from a fresh YTD peak as rising geopolitical tensions keep investors on the edge and offer some support to the US Dollar. Trade-related uncertainties also undermine the Aussie. However, Fed rate cut bets could cap any meaningful USD appreciation and limit losses for the pair.
Gold price draws support from the global flight to safety
Gold price attracts some dip-buyers in the Asian session, reversing a part of the previous day's downfall as rising geopolitical tensions revive safe-haven demand. Bets that the Fed will resume its rate-cutting cycle in September benefit the non-yielding yellow metal, though a modest US Dollar uptick could act as a headwind.
Bank of Japan set to hold rates steady as officials mull halving the pace of tapering JGB purchases
The Bank of Japan is set to keep interest rates steady at 0.50% on Tuesday. The focus will be on the BoJ’s JGB purchases tapering plan as well as any hints on the timing of the next rate hike. The BoJ policy announcements are expected to significantly impact the Japanese Yen.
Chinese data suggests economy on track to hit 2025 growth target
China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.
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.