|

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.

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 price0.9066
Today Daily Change0.0000
Today Daily Change %0.00
Today daily open0.9066
 
Trends
Daily SMA200.911
Daily SMA500.9012
Daily SMA1000.8834
Daily SMA2000.8866
 
Levels
Previous Daily High0.9086
Previous Daily Low0.9055
Previous Weekly High0.9099
Previous Weekly Low0.9036
Previous Monthly High0.9195
Previous Monthly Low0.8998
Daily Fibonacci 38.2%0.9074
Daily Fibonacci 61.8%0.9067
Daily Pivot Point S10.9052
Daily Pivot Point S20.9038
Daily Pivot Point S30.9021
Daily Pivot Point R10.9083
Daily Pivot Point R20.91
Daily Pivot Point R30.9114

Author

Akhtar Faruqui

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.

More from Akhtar Faruqui
Share:

Editor's Picks

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.