- USD/CHF remains quiet in the Asian session in the middle of the week.
- US 10-year benchmark Treasury yields fell on Tuesday following softer CPI data.
- US Dollar Index stays strong near 92.70 after short-lived CPI induced selling pressure.
The USD/CHF pair remains muted in the initial Asian trading hours on Wednesday. The pair fails to preserve the previous session’s upside momentum and hovers in a very narrow trade band.
At the time of writing, USD/CHF is trading at 0.9201, down 0.01% for the day.
The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, trades near 92.70 after testing the weekly low around 92.30 on Tuesday.
The US 10-year benchmark yields fell to 1.28% with a 3.05% loss following the softer US Consumer Price Index (CPI) data, which eased concerns the Fed would have to start tapering early.
The US Consumer Price Index (CPI), excluding the volatile food and energy components, rose 0.1% in August. Inflation grew 0.3% in the previous month as compared to 0.5% in July. The readings aligned with the Fed’s view of inflation as transitory and raised doubts about tapering this year.
It is worth noting that, S&P 500 Futures were trading at 4,443.05 with 0.57% losses, which indicates reduced risk appetite among investors.
On the other hand, the Swiss franc holds some ground on its safe-haven appeal amid risk aversion on the rapid spread of the delta variant of the coronavirus and its impact on global economic recovery.
Furthermore, strong economic data fuels the upside in the franc as Swiss producer and import prices jumped 4.4% in August on yearly basis. The Unemployment Rate fell to an 18-month low at 2.7% in August, mildly below the market consensus of 2.8%.
As for now, traders wait for the US Industrial Production data, NY Empire State Manufacturing Index, and Trade Balance data to gain fresh trading impetus.
USD/CHF additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.