• USD/CHF has picked up demand after dropping below 0.9220 as volatility might trigger ahead of US GDP data.
  • Tuesday’s upbeat preliminary US S&P PMI data failed to infuse confidence in the USD Index.
  • Accelerating interest rates by the Fed is dampening firms’ production activities.

The USD/CHF pair has sensed buying interest after dropping below the critical support of 0.9220 in the early Asian session. The Swiss franc asset is gaining traction as investors are shifting their focus toward the release of the United States Gross Domestic Product (GDP) data, which is scheduled for Thursday.

S&P500 futures are displaying losses after Tuesday’s choppy trade, portraying a caution for the risk-sensitive assets. A decline in the risk appetite of the market participants has improved the appeal for safe-haven assets. The US Dollar Index (DXY) is building a cushion around 101.50 after a sell-off. The 10-year US Treasury yields are still hovering above 3.45%.

Tuesday’s upbeat preliminary United States S&P PMI data failed to infuse confidence in the USD Index for continuing its upside momentum. Manufacturing PMI landed at 46.8, higher than the expectations of 46.1 and the former release of 46.2. Also, the Services PMI remained upbeat and scaled higher to 46.6 against the consensus of 44.5 and the prior release of 44.7.

For further guidance, US GDP data will better guide USD/CHF for further action. Per the projections, a contraction is expected in preliminary GDP for the fourth quarter of CY2022 to 2.8% from the 3.2% reported earlier. This could be the outcome of accelerating interest rates by the Federal Reserve (Fed), which has forced firms to dodge borrowings at a higher cost to avoid higher interest obligations.

On the Swiss Franc front, investors are awaiting the release of the ZEW Survey- Expectations (Jan), which will release on Wednesday. The economic data that display present business conditions and employment conditions are expected to trim to -47.6 from the former release of -42.8. A weaker-than-projected qualitative data could impact the Swiss Franc ahead.

USD/CHF

Overview
Today last price 0.9223
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 0.9223
 
Trends
Daily SMA20 0.9257
Daily SMA50 0.9341
Daily SMA100 0.959
Daily SMA200 0.9638
 
Levels
Previous Daily High 0.9241
Previous Daily Low 0.916
Previous Weekly High 0.9288
Previous Weekly Low 0.9085
Previous Monthly High 0.9471
Previous Monthly Low 0.9201
Daily Fibonacci 38.2% 0.921
Daily Fibonacci 61.8% 0.9191
Daily Pivot Point S1 0.9175
Daily Pivot Point S2 0.9127
Daily Pivot Point S3 0.9094
Daily Pivot Point R1 0.9256
Daily Pivot Point R2 0.9289
Daily Pivot Point R3 0.9337

 

 

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