USD/CHF powers December highs near 0.9300 as analysts expect more hawkish Fed plus signs of SNB intervention


  • USD/CHF surged 0.9% on Monday from under 0.9200 to current levels around 0.9270 and is eyeing December highs near 0.9300.
  • The dollar was strong on Monday as market participants revise their Fed calls towards more aggressive hikes in 2022.
  • But CHF also weakened substantially in wake of a jump in Swiss sight deposits that could indicate SNB intervention.

USD/CHF hit its highest levels in nearly four weeks on Monday after breaking convincingly above the 0.9250 level for the first time since mid-December. It’s been a broadly decent day for the buck as various banks/analysts revise their Fed forecasts in wake of last week’s hawkish Fed minutes and US December jobs report to expect as many as four rate hikes in 2022. But that doesn’t explain the full extent of the upside on Monday, which has seen USD/CHF surge from opening levels to the south of 0.9200 to current levels around 0.9270, an on-the-day gain of around 0.9%.

That surge has seen USD/CHF break to the north of a bullish trend channel that had been constraining the price action over the past week or so. It also marks a clean break back above the pair’s 21, 50 and 200DMAs, all of which reside between the 0.9160-0.9210 area. Technically speaking, a test of the December high at just under 0.9300 now seems highly likely and if that level is broken, eyes will turn to the next area of resistance around 0.9375, a double top of the September/November highs.

The Swiss franc’s near 1.0% depreciation on the day versus the US dollar means it is by far and away the worst performing G10 currency. Some traders attributed the weakness to weekly Swiss sight deposit data released early during Monday’s European session. Total sight deposits jumped to CHF 724.631B from CHF 722.771B a week earlier, a sign that the SNB may have stepped up its forex interventions to weaken CHF last week.

As noted by analysts at Reuters, “the SNB… has long used foreign currency purchases and negative interest rates as the foundation of its expansive monetary policy… (and) increases to sight deposits - cash which commercial banks store with the central bank overnight - are normally seen as a proxy for foreign currency purchases”. But economists cautioned not to read too much into the data, as it is usual to see lower deposits towards the end of the year before  jump in January.

USD/Chf

Overview
Today last price 0.9273
Today Daily Change 0.0090
Today Daily Change % 0.98
Today daily open 0.9183
 
Trends
Daily SMA20 0.9193
Daily SMA50 0.9209
Daily SMA100 0.9213
Daily SMA200 0.9168
 
Levels
Previous Daily High 0.9232
Previous Daily Low 0.9182
Previous Weekly High 0.9232
Previous Weekly Low 0.9113
Previous Monthly High 0.9295
Previous Monthly Low 0.9102
Daily Fibonacci 38.2% 0.9201
Daily Fibonacci 61.8% 0.9213
Daily Pivot Point S1 0.9166
Daily Pivot Point S2 0.915
Daily Pivot Point S3 0.9117
Daily Pivot Point R1 0.9215
Daily Pivot Point R2 0.9248
Daily Pivot Point R3 0.9265

 

 

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

AUD/USD bulls flirt with 0.7100 with eyes on Aussie Retail Sales, US PCE Inflation

AUD/USD bulls flirt with 0.7100 with eyes on Aussie Retail Sales, US PCE Inflation

AUD/USD holds onto the recently sidelined moves around 0.7100 as bulls and bears jostle over mixed clues heading into the key data on Friday. Also restricting the Aussie prices are downbeat statistics at home and looming economic fears over the largest customer China.

AUD/USD News

EUR/USD: Bulls are taking control and eye the 1.08 area

EUR/USD: Bulls are taking control and eye the 1.08 area

EUR/USD's market structure is now bullishon the daily chart. Euro's support near 1.0705 could offer a base from which bulls can engage in order to target the 1.08 areas. For the FOMC minutes, the pair was based at the targetted support area and there were prospects of a higher correction from support.

EUR/USD News

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold price (XAU/USD) witnessed a minor pullback towards $1,850.00 in its initial trading hours but has bounced back sharply. The precious metal is displaying a balance auction in a range of $1,840.76-1,856.35 from Wednesday.

Gold News

Will Cardano price finally show its cards?

Will Cardano price finally show its cards?

Cardano price is preparing for a retest of $0.80. Still, jumping in early might be too risky. Traders should wait for confirmation signals.

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