- USD/CHF focuses on recapturing the crucial resistance of 0.8900 amid a risk-off mood.
- Fed Powell would provide fresh guidance on the interest rate outlook.
- The term of SNB Jordan will be over in the second half of this year.
The USD/CHF pair rises slightly above 0.8850 in Tuesday’s European session as investors turn cautious ahead of the Federal Reserve (Fed) Chair Jerome Powell’s testimony before Congress on Wednesday and the United States Nonfarm Payrolls (NFP) data later this week.
The Swiss Franc asset extends its upside as the US Dollar Index (DXY) rebounds from two-day low around 103.70. Fed Powell's commentary and the February labor market data will provide fresh insights about when the Fed will start reducing interest rates.
The Swiss Franc fails to find buying interest despite the annual Consumer Price Index (CPI) remaining stickier than expectations in February. The monthly CPI rose strongly by 0.6% against 0.2% in January. The monthly pace was significantly higher than required to keep inflation below 2%. The annual CPI at 1.2% was higher than expectations of 1.1% but lower than the prior reading of 1.3%.
Meanwhile, it is announced that the SNB is looking for the successor of Chairman Thomas J. Jordan. The new SNB Chairman will be announced in the second half of this year.
USD/CHF falls while attempting to deliver a breakout of the consolidation formed in a range of 0.8744-0.8898 on a four-hour timeframe. A mild sell-off near the upper end of the consolidation doesn’t indicate a reversal but indicates that US Dollar bulls need more force for a decisive break. The consolidation pattern indicates a sharp volatility contraction. A breakout in the same will result in a volatility expansion, leading to wider ticks and heavy volume.
The 50-period Exponential Moving Average (EMA) near 0.8822 continues to support the US Dollar bulls.
The 14-period Relative Strength Index (RSI) climbs above 60.00. A bullish momentum would emerge if the RSI (14) manages to sustain above the same.
Fresh upside would emerge if the asset breaks above the three-month high around 0.8900, which would unlock upside towards September 20 low at 0.8932 and November 8 low at 0.8976.
On the contrary, a breakdown below February 13 low at 0.8746 would expose the asset to the round-level support of 0.8700, followed by February 1 high around 0.8650.
USD/CHF four-hour chart
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.
Recommended content
Editors’ Picks
AUD/USD remains depressed below 0.6300 as trade jitters underpin USD
AUD/USD trades with a negative bias below the 0.6300 mark amid a mildly stronger USD, which hit a three-week top during the Asian session. Moreover, worries over Trump's trade tariffs weigh on investors' sentiment and further undermine the risk-sensitive Aussie amid bets that the RBA will cut interest rates again in May.
USD/JPY flat-lined around mid-150.00s; remains close to multi-week high set on Tuesday
USD/JPY struggles to build on the overnight move higher and oscillates around mid-150.00s during the Asian session on Thursday amid mixed cues. Hawkish BoJ expectations and the risk-off impulse, led by Trump's new tariff on imported cars, underpin the safe-haven JPY, capping spot prices.
Gold price sticks to positive bias above $3,000 on safe-haven demand
Gold price ticks higher during the Asian session on Thursday as worries about Trump's tariff plans continue to benefit the safe-haven bullion. However, a modest USD uptick to a three-week high caps the commodity. Traders also seem reluctant and opt to wait for the release of the US PCE Price Index on Friday.
Stablecoin mania kicks off as Wyoming and Fidelity join the race
According to Governor Mark Gordon, the state of Wyoming has joined the race for a stablecoin, following plans to launch WYST, a US Dollar-backed token in July.
Sticky UK services inflation shows signs of tax hike impact
There are tentative signs that the forthcoming rise in employer National Insurance is having an impact on service sector inflation, which came in a tad higher than expected in February. It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.