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 shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold retests $4,300; USD losses momentum

Gold picks up fresh upside traction and challenges the key $4,300 mark per troy ounce on Monday. The yellow metal, however, remain on the back foot on the back of marked gains in the US Dollar and rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP recover ahead of US Senate vote on CLARITY Act

Bitcoin edges higher, trading near $77,884 as of Monday, in tandem with broader gains across the cryptocurrency market. Ethereum and Ripple follow Bitcoin’s neutral-to-bullish trajectory, holding key support levels at $2,521 and $1.38, respectively.

Will the Fed deliver the hawkishness markets are pricing in?

Fed hike bets increase after PPI and CPI reports. Updated dot plot to be crucial for the dollar’s reaction. Warsh’s independence faces test amid Trump’s pressure for lower rates. For the Dollar to extend gains, Fed needs to satisfy current hawkish bets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.