• USD/CHF picks up bids to consolidate intraday losses, struggles to extend Friday’s downside move.
  • Market sentiment remains positive but US dollar bounce off daily lows as traders recheck hawkish Fed bets.
  • SNB, Fed expected to ease on rate hikes amid recession fears.

USD/CHF bears struggle to keep reins as traders doubt the next moves of the Swiss National Bank (SNB) and the US Federal Reserve (Fed) heading into Monday’s European session. That said, the Swiss currency (CHF) pair picks up bids to 0.9760 as it trims daily loss to 0.05% intraday, after dropping the most in a month the previous day.

Although Friday’s mostly downbeat US data and cautious Fedspeak triggered the US dollar’s weakness, the greenback appears to regain upside momentum as traders recheck dovish Fed bets. On the other hand, talks that the SNB will go for a 0.50% rate hike in September, after the latest 1.0% increase in benchmark rates, also appeared to have favored the USD/CHF bulls.

US Dollar Index (DXY) remains down for the second consecutive day while keeping Friday’s pullback from nearly a two-decade high, recently picking up bids to 107.95. In doing so, the greenback’s gauge versus the six major currencies justifies recently easing hawkish bias over the Fed’s next moves, especially after the previous day’s mixed US data and cautious Fedspeak. Additionally, weighing on the DXY is the Fed policymakers’ silence period ahead of late July’s Federal Open Market Committee (FOMC).

It’s worth noting that Reuters quoted a Swiss newspaper published on Saturday to mention that the SNB is currently planning to raise interest rates by 50 or 75 basis points in its next scheduled monetary policy announcement in September. The news also stated, “Newspaper Schweiz am Wochenende said the central bank was planning a rate hike of 50 basis points to 0.25% from -0.25% at its next scheduled monetary policy announcement on Sept. 22, though the situation could yet change between now and then. It cited one or more unidentified people involved in the matter.”

Amid these plays, stock futures and Asian equities track Wall Street’s gains but the US Treasury yields remain pressured of late.

Moving on, Tuesday’s Swiss trade numbers may entertain USD/CHF traders ahead of Friday’s US flash PMIs for July. However, major attention will be given to the central bank chatters and an absence of Fedspeak, due to the pre-Fed blackout could keep the pair sellers hopeful.

Technical analysis

50-DMA defends USD/CHF bulls around 0.9735 but the USD/CHF recovery remains elusive unless crossing the 0.9875 hurdle on a daily closing basis.

Additional important levels

Overview
Today last price 0.9757
Today Daily Change -0.0006
Today Daily Change % -0.06%
Today daily open 0.9763
 
Trends
Daily SMA20 0.9676
Daily SMA50 0.974
Daily SMA100 0.9575
Daily SMA200 0.9393
 
Levels
Previous Daily High 0.9841
Previous Daily Low 0.976
Previous Weekly High 0.9886
Previous Weekly Low 0.9757
Previous Monthly High 1.005
Previous Monthly Low 0.9495
Daily Fibonacci 38.2% 0.9791
Daily Fibonacci 61.8% 0.981
Daily Pivot Point S1 0.9735
Daily Pivot Point S2 0.9707
Daily Pivot Point S3 0.9654
Daily Pivot Point R1 0.9816
Daily Pivot Point R2 0.9869
Daily Pivot Point R3 0.9897

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD continues to decline toward 1.0250 during the American trading hours on Friday. After the data published by the UOM showed that the long-run inflation outlook rose to 3% in August from 2.9% in July, the dollar gathered strength against its rivals, weighing on the pair.

EUR/USD News

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD is trading deep in negative territory near 1.2100 during the American session on Friday. With the UoM's Consumer Sentiment Survey pointing to a modest increase in the long-run inflation outlook, the US Dollar Index extended its rally, reflecting a broad dollar strength.

GBP/USD News

Gold clings to modest gains above $1,790

Gold clings to modest gains above $1,790

Gold stays relatively resilient on Friday and trades modestly higher on the day above $1,790. Although the greenback continues to outperform its rivals on the latest US data, falling US Treasury bond yields help XAU/USD hold in positive territory.

Gold News

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shytoshi Kusama, the project leader of Shiba Inu announced the launch of Shiba Eternity for Vietnamese players. The game is available for testing and the team has asked users for their review. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures