USD/CHF jumps to 0.9070 as Switzerland’s soft CPI weakens Swiss Franc


  • USD/CHF climbs to 0.9070 after the release of the softer-than-expected Swiss CPI report.
  • Swiss soft inflation data has boosted expectations of more rate cuts by the SNB.
  • The US Dollar exhibits weakness ahead of the US NFP report.

The USD/CHF pair rallies to 0.9070 in the European session on Thursday. The Swiss Franc asset strengthens as softer-than-expected Switzerland Consumer Price Index (CPI) data for March has boosted expectations of one more interest rate cut by the Swiss National Bank (SNB).

Among developed economies, the SNB has led the rate-cut cycle after reducing interest rates by 25 basis points (bps) to 1.5% in the monetary policy meeting on March 21.

Federal Statistical Office of Switzerland has reported that the monthly consumer price inflation remains stagnant while investors anticipated an increase of 0.3%. In February, price pressures rose by 0.6%. Annually, inflationary pressures surprisingly grew at a slower pace of 1.0%. Economists expected the consumer price inflation to grow at a higher pace of 1.3% after rising 1.2% in February.

Meanwhile, the US Dollar has extended its downside as weak United States Services PMI for March has dented the economic outlook. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, falls to 104.12.

The Institute of Supply Management (ISM) reported that the Services PMI fell to 51.4 from expectations of 52.7 and the former reading of 52.6. Also, subindexes such as New Orders and Prices Paid eased significantly.

Going forward, investors will focus on the US Nonfarm Payrolls (NFP) data for March, which will be published on Friday. US employers are anticipated to have recruited 200K workers, lower than the former reading of 275K.

USD/CHF

Overview
Today last price 0.9067
Today Daily Change 0.0038
Today Daily Change % 0.42
Today daily open 0.9029
 
Trends
Daily SMA20 0.892
Daily SMA50 0.8823
Daily SMA100 0.8739
Daily SMA200 0.882
 
Levels
Previous Daily High 0.9096
Previous Daily Low 0.9028
Previous Weekly High 0.9072
Previous Weekly Low 0.8969
Previous Monthly High 0.9072
Previous Monthly Low 0.873
Daily Fibonacci 38.2% 0.9054
Daily Fibonacci 61.8% 0.907
Daily Pivot Point S1 0.9006
Daily Pivot Point S2 0.8983
Daily Pivot Point S3 0.8938
Daily Pivot Point R1 0.9074
Daily Pivot Point R2 0.9119
Daily Pivot Point R3 0.9142

 

 

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