- USD/CHF halts a four-day losing streak as US Dollar rebounds.
- US Retail Sales eased at 0.1% in October, compared to the expected 0.3% decline.
- Fed uncertainty over policy decisions in the December meeting is supporting the Greenback.
USD/CHF attempts to rebound from the two-month lows, halting a four-day losing streak. The pair trades slightly higher around 0.8890 during the Asian session on Thursday.
The US Dollar Index (DXY) showed improvement after the release of economic data from the United States on Wednesday. The US Retail Sales eased at 0.1% in October, contrary to expectations of a steeper slide of 0.3%. However, the unexpected decline in the US Producer Price Index (PPI) by 0.5%, compared to the anticipated 0.1% increase, and the drop in the annual PPI from 2.2% to 1.3%.
The Retail Sales figures might have raised a cautionary flag for the Federal Reserve (Fed), suggesting potential threats to progress on inflation. This could justify further tightening, and the Fed's cautious stance, despite recent data showing a decline in inflation, has introduced an element of uncertainty. The uncertainty surrounding the Fed policy decision for the December meeting has generated support for the USD/CHF pair.
Furthermore, the USD/CHF pair has seen a recovery, buoyed by a rise in US Treasury yields, with the 2-year rate standing at 4.90% and 10-year rates at 4.50%, at the time of writing.
Swiss National Bank (SNB) Chairman Thomas Jordan mentioned in an interview with a local television station that he doesn't rule out the possibility of more interest rate hikes in the future. This might have contributed upward support to underpinning the Swiss Franc (CHF) during some previous sessions.
Swiss Industrial Production for the third quarter will be eyed on Friday, seeking insights into whether the Swiss National Bank (SNB) will contemplate an interest rate increase in the December meeting. However, the weekly US Jobless Claims will be released later in the North American session, which may provide further impetus on the condition of the US labor market.
USD/CHF: Technical levels to watch
|Today last price||0.8886|
|Today Daily Change||0.0002|
|Today Daily Change %||0.02|
|Today daily open||0.8884|
|Previous Daily High||0.8903|
|Previous Daily Low||0.8855|
|Previous Weekly High||0.9046|
|Previous Weekly Low||0.8954|
|Previous Monthly High||0.9244|
|Previous Monthly Low||0.8888|
|Daily Fibonacci 38.2%||0.8873|
|Daily Fibonacci 61.8%||0.8885|
|Daily Pivot Point S1||0.8858|
|Daily Pivot Point S2||0.8833|
|Daily Pivot Point S3||0.881|
|Daily Pivot Point R1||0.8906|
|Daily Pivot Point R2||0.8929|
|Daily Pivot Point R3||0.8954|
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