USD/CHF oscillates in a range of 0.9550-0.9570, focus shifts to SNB Jordan’s speech


  • USD/CHF consolidates in a 20-pips range after a juggernaut upside move.
  • Fed-SNB policy stance diversion underpinned the greenback against the Swiss franc.
  • Investors expect more than one 50-bps rate hike by the Fed this year.

The USD/CHF pair is witnessing back and forth moves in early Tokyo in a range of 0.9555-0.9575. The asset has been scaling higher right from the first tick in April on progressing odds of a jumbo rate hike by the Federal Reserve (Fed) in its upcoming monetary policy meeting, while the Swiss National Bank (SNB) will stick with its ultra-loose monetary policy due to lower aggregate demand.

Inflation is sky-rocketing in the US economy. It won’t be wrong to say that the economy is entering into a prolonged hawkish environment where interest rates will continue to elevate and balance sheet size will be reduced drastically to squeeze liquidity from the market. For the certainty of the liquidity squeeze, investors should brace more than one 50 basis points (bps) interest rate hike by the Federal Reserve (Fed) this year. Also, the Fed will do the strategic decision-making to return to neutral rates sooner rather than later.

On the Swiss franc front, investors are focusing on the speech from SNB Governor Thomas J. Jordan, which is due on Friday. This will provide insights into the likely monetary policy action by the SNB in its upcoming monetary policy meeting. Meanwhile, investors have shrugged off Swiss’s 13-year high inflation print at 2.2%.

USD/CHF

Overview
Today last price 0.9565
Today Daily Change -0.0008
Today Daily Change % -0.08
Today daily open 0.9573
 
Trends
Daily SMA20 0.9367
Daily SMA50 0.9308
Daily SMA100 0.9256
Daily SMA200 0.9228
 
Levels
Previous Daily High 0.9593
Previous Daily Low 0.9529
Previous Weekly High 0.9593
Previous Weekly Low 0.9421
Previous Monthly High 0.946
Previous Monthly Low 0.915
Daily Fibonacci 38.2% 0.9568
Daily Fibonacci 61.8% 0.9553
Daily Pivot Point S1 0.9537
Daily Pivot Point S2 0.9501
Daily Pivot Point S3 0.9473
Daily Pivot Point R1 0.9601
Daily Pivot Point R2 0.9629
Daily Pivot Point R3 0.9665

 

 

 

 

 

 

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