USD/CHF holds position above 0.9050 as the US Dollar remains firmer

USD/CHF inches higher due to a firmer US Dollar driven by cautious remarks from Fed officials.
The decline in the US Treasury yields limits the advance of the Greenback.
Swiss Consumer Climate (YoY) came in at the reading of -38.1 for April, compared to -38.0 prior.

Akhtar Faruqui FXStreet

USD/CHF gains ground for the second successive session, trading around 0.9070 during the European hours on Monday. The US Dollar remains firmer due to the hawkish sentiment surrounding the Federal Reserve (Fed) to maintain higher interest rates for an extended period, underpinning the USD/CHF pair. This sentiment is bolstered by the cautious comments from Federal Reserve (Fed) officials regarding interest rate cuts.

However, Friday's release of the US Consumer Sentiment Index added to evidence suggesting a slowdown in the economy. The index declined to 67.4 in May from April's 77.2, hitting a six-month low and falling short of market expectations. This has put pressure on the US Treasury yields, limiting the advance of the Greenback.

As per Reuters, Neel Kashkari, President of the Minneapolis Federal Reserve (Fed), exercised caution regarding the extent of tightness in monetary policy. In an interview with CNBC on Friday, Kashkari remarked that although the bar for another rate hike is high, it should not be completely dismissed. Furthermore, San Francisco Fed President Mary Daly stressed the importance of sustaining a prolonged tight policy stance to achieve the Federal Reserve's inflation goals.

The US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, trades around 105.30 with 2-year and 10-year yields on US Treasury bonds standing at 4.85% and 4.48%, respectively, by the press time.

In Switzerland, SECO Consumer Climate (YoY) experienced a slight decline in April, with a reading of -38.1, compared to the previous -38.0 and an expected -40.0. However, it still significantly trailed the long-term average.

Over the past week, the Swiss National Bank (SNB) saw its foreign exchange reserves climb to CHF 720 billion in April, marking the fifth consecutive increase. The SNB has redirected its attention from deliberately strengthening the Swiss Franc (CHF), as the central bank intensifies its focus on combating inflation.

USD/CHF

Overview
Today last price	0.9066
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.9066

Trends
Daily SMA20	0.911
Daily SMA50	0.9012
Daily SMA100	0.8834
Daily SMA200	0.8866

Levels
Previous Daily High	0.9086
Previous Daily Low	0.9055
Previous Weekly High	0.9099
Previous Weekly Low	0.9036
Previous Monthly High	0.9195
Previous Monthly Low	0.8998
Daily Fibonacci 38.2%	0.9074
Daily Fibonacci 61.8%	0.9067
Daily Pivot Point S1	0.9052
Daily Pivot Point S2	0.9038
Daily Pivot Point S3	0.9021
Daily Pivot Point R1	0.9083
Daily Pivot Point R2	0.91
Daily Pivot Point R3	0.9114

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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