- USD/CHF posts mild gains in the Asian session.
- US dollar stays elevated despite disappointing Initial Jobless Claims data.
- Swiss Franc remains under pressure after SNB dovish outlook.
The buying pressure in the US dollar keeps USD/CHF higher in the Asian session on Friday morning. The pair touched the multi-month high in the previous session with more than 110 pips movement.
At the time of writing, USD/CHF is trading at 0.9178, up 0.06% for the day.
The US dollar index trades at 91.87 with 0.4% losses, after rising near the 92.00 level on Thursday. Investors digested the hawkish tone of the Fed and higher-than-expected inflation readings. The US Initial Jobless Claims rose to 412K for the first time in the past seven weeks and above the market expectations of 359K.
The US 10-year benchmark yields fell slightly toward 1.56% following the data. The US Dollar mirroring the movement in the bond market.
On the other hand, the Swiss Franc remained on the backfoot after the Swiss National Bank kept its ultra-loose monetary policy in place, despite raising its inflation forecast. The central bank said that the currency remained highly valued, the comments weighed on the franc’s valuations.
The divergence in the monetary policy stance between the two economies is expected to influence the pair’s performance in the near future.
USD/CHF additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.