USD/CHF jumps toward 0.9600, hits highest levels since June 2020
- US dollar rises sharply across the board during the American session amid risk aversion.
- S&P 500 falls more than 1% for the second day in a row.
- USD/CHF accelerates to the upside, eyes 0.9600.
The USD/CHF is rising sharply, approaching 0.9600 on Friday, boosted by a stronger US dollar across the board. The DXY is up 0.60%, trading above 101.00, at the highest since March 2020.
More than a rally
The US dollar gained speed during the American session and boosted USD/CHF to 0.9590, the highest level since June 2020. It remains near the top, holding onto significant gains.
Expectations for a more aggressive tightening from the Federal Reserve continue to weigh on markets. In Wall Street, main indices are falling more than 1% for the second day in a row. US yields are relatively steady on Friday, holding near multi-year highs.
Economic data from the US came in mixed on Friday with the S&P Global PMI. The Manufacturing index rose unexpectedly to the strongest in nine-month while the Service sector indicator tumbled to the lowest in three months. Next week's data includes the first estimate of Q1 GDP.
Above the 200-week SMA
The USD/CHF is about to post the third weekly gain in a row, accumulating a gain of more than 300 pips. The weekly close will be the first one above the 200-week Simple Moving Average in two years.
USD/CHF weekly chart
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
