- USD/CHF gains ground near 0.9125 on the risk-on mood in Tuesday’s early European session.
- The hawkish comments from the Fed lift the Greenback and create a tailwind for USD/CHF.
- The ongoing geopolitical tensions in the Middle East might boost safe-haven assets like the Swiss Franc.
The USD/CHF pair trades on a stronger note for the second consecutive day around 0.9125 during the early European session on Tuesday. The risk-on environment amid easing fears of wider tensions in the Middle East provides some support to the US Dollar (USD). Investors await the US preliminary S&P Global Purchasing Managers Index (PMI) data for April on Tuesday for fresh impetus.
The Fed Bank of Chicago revealed on Monday that the National Activity Index improved to 0.15 in March from 0.09 in the previous reading. However, the data had little to no impact on the Greenback after the release. The hawkish remarks from US Federal Reserve (Fed) policymakers triggered the expectation that the US central bank would delay the rate cut, which boosts the USD against the Swiss Franc (CHF).
The US preliminary Gross Domestic Product Annualized for the first quarter (Q1) and March’s Personal Consumption Expenditures Price Index (PCE) later this week will be closely watched events and might offer some hints about the possibility of policy easing by the Fed. In case the reports show upbeat data, this could boost the USD and cap the pair’s upside.
On the other hand, the ongoing geopolitical tensions in the Middle East might boost safe-haven flows, benefiting the CHF. Apart from this, the Swiss ZEW Survey for April will be released on Wednesday. On Friday, Swiss National Bank (SNB) Chairman Jordan's speech will be in the spotlight.
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
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.