- USD/CHF maintains its upside momentum in the Asian session.
- US dollar holds onto gains on Fed’s inflation and interest rate outlook.
- CHF surrenders gains as investors' risk appetite improves.
USD/CHF is accumulating minor gains in the early Asian session on Friday. After testing the high of 0.9240 in the previous week, the pair is making a consolidative move near the 0.9180 level.
At the time of writing, USD/CHF is trading at 0.9182, up 0.07% for the day.
Investors stay invested in the greenback as the shift in the US Fed’s stance on interest rates pertaining to the rise of inflation. However, the gains in the greenback were paused after the central bank signalled no steps in near future to roll out the stimulus although it acknowledges the risk of higher inflation.
The mixed economic data failed to boost the greenback’s gain. The Weekly Initial Jobless Claims fell to 411K, well above the COVID-19 pandemic. The reading suggests slower growth in the labor market. The Labor market is a property for the central bank now.
The US Durable Goods orders rose 2.3% in May, recovering from a downwardly revised 0.8% drop in April, while the GDP growth was unrevised at 6.4%.
Meanwhile, US President Joe Biden on Thursday announced that the White House has agreed to an infrastructure plan with a bipartisan group of senators. The infrastructure plan is to improve the nation’s roads, bridges, and broadband.
Additionally, the US large banks cleared the Fed’s stress test, as they now face pandemic-era restrictions on buying back and paying dividends. The market sentiment improved following the announcements, which added to the US dollar attractiveness.
On the other hand, the Swiss franc maintains its safe-haven asset status, however, gains are limited as risk appetite improves.
As for now, traders are waiting for the release of the US Personal Income, PCE Price Index, and Michigan Inflation Expectations for 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 trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.