USD/CHF looks to approach 0.8900 on firmer US Dollar, focus on US PMI data

USD/CHF trades sideways around 0.8890 ahead of the US PMI releases.
Fed Governor Christopher Waller stated that the interest rates decision would be data-driven.
US Commerce Secretary Gina Raimondo expects no revisions to the US tariffs on China.

Akhtar Faruqui FXStreet

USD/CHF consolidates around 0.8890 during the Asian session on Wednesday, grappling to extend the gains from the previous session. However, the pair experienced downward pressure, primarily driven by the strength of the US Dollar (USD). The yield on the 10-year US Treasury bond rose to 4.25%, up by 1.51%, which is contributing the support in underpinning the US Dollar (USD).

Investors will closely watch the upcoming data set to be released later in the day. This data includes the US ISM Services PMI for August and the US S&P Global PMIs. These releases will provide valuable insights into the current economic conditions in the United States and could provide a clearer direction for the USD/CHF currency pair.

On Tuesday, as per Reuters, US Commerce Secretary Gina Raimondo expects no revisions to the US tariffs on China that were implemented during President Donald Trump's administration until the US Trade Representative's (USTR) Office completes its ongoing review. This renewed tension in the trade war between the US and China could potentially boost the appeal of the traditional safe-haven Swiss Franc (CHF) and create headwinds for the USD/CHF currency pair.

US Dollar Index (DXY), which measures the value of the Greenback against the basket of six other major currencies, hovers around 104.70 at the time of writing. Market participants appear to be increasingly acknowledging the no-interest rate hike by the US Federal Reserve (Fed) during the upcoming September policy meeting.

Moreover, United States (US) Factory Orders for July dropped to their lowest levels since mid-2020. On Tuesday, the data showed a print of -2.1%, falling short of the market consensus of -0.1% figure, and swinging from the 2.3% growth seen in the previous month. The

According to the CME FedWatch Tool, there is a 93% probability that the interest rate will remain unchanged. Additionally, Fed Governor Christopher Waller, in an interview with CNBC, emphasized that the decision on interest rates would depend on the data. Waller's statement regarding the data suggests a favorable soft-landing scenario has played a role in bolstering the strength of the US Dollar (USD).

USD/CHF: additional important levels

Overview
Today last price	0.8891
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	0.8895

Trends
Daily SMA20	0.8809
Daily SMA50	0.878
Daily SMA100	0.888
Daily SMA200	0.9061

Levels
Previous Daily High	0.8903
Previous Daily Low	0.8842
Previous Weekly High	0.8865
Previous Weekly Low	0.8745
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.888
Daily Fibonacci 61.8%	0.8865
Daily Pivot Point S1	0.8857
Daily Pivot Point S2	0.8819
Daily Pivot Point S3	0.8796
Daily Pivot Point R1	0.8918
Daily Pivot Point R2	0.8941
Daily Pivot Point R3	0.8979

Author

Akhtar Faruqui

FXStreet

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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.