USD/CHF kisses 0.9720 on firmer DXY, SNB’s Jordan in focus
- USD/CHF shoots above 0.9700 on soaring DXY.
- The uncertainty over the rate decision by the Fed next week is fueling a rally in the greenback.
- Investors are focusing on the speech from SNB’s Jordan, which is due on Friday.
The USD/CHF pair is scaling higher in the early European session as the market participants are underpinning the greenback on a risk-off impulse. The asset is establishing above the round level resistance of 0.9700 and has recorded a high of 0.9720 in today’s session. The major has continued its five-day winning streak on Thursday and is likely to accelerate further amid broader strength in the US dollar index (DXY).
The DXY has touched 103.70, at the press time, and is not showing any signs of exhaustion yet. The asset is likely to reclaim its five-year high at 103.82. Uncertainty ahead of the interest rate decision by the Federal Reserve (Fed) has infused fresh blood in the DXY. Next week’s monetary policy decision will focus on squeezing liquidity from the economy swiftly to corner the soaring inflation. The US Consumer Price Index (CPI) has climbed to 8.5% and a jumbo rate hike is highly required to fix the inflation mess.
On the Swiss franc front, investors are eyeing the speech from Swiss National Bank (SNB)’s Thomas J. Jordan, which is due on Friday. It is worth noting that the inflation in the Swiss area has overstepped its 13-year high to 2.2%, which is above the targeted figure of 2.2%. Therefore, a slightly hawkish tone from the SNB’s Jordan cannot be ruled out.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
