- Rising inflation concerns continue to stress the swissie traders.
- The cautious market mood aided the Swiss franc's safe-haven appeal, contributed to the drop.
- USD/CHF struggles around 0.9270, investors eye Swiss macro data.
The USD/CHF pair is dropping towards 0.9250, moving further away from the last October 12 high of 0.9300 level. The cross-country pair is trading around 0.9272, down 0.12%, during the Asian trading session on Thursday. It appears that the latest trend in the currency pair is led by marginal ease in the value of the US dollar. Also, the pullback in the US treasury yield is giving a much-needed boost to the USD/CHF bears.
Like its peers, Switzerland is also not cushioned enough to side-line the effects of inflation. Hence, the Swiss National Bank (SNB) is putting efforts to curb the rising inflation. It is worth mentioning that the inflation rate rose by 0.3% to 0.2% in October, the highest since August 2018. Now, as the Swiss economy regains its momentum, prices are beginning to catch up.
Despite the vaccination campaign in process, the uncertainty led by the variants of the COVID-19 virus continues to stress the policymakers and market participants. In addition to this, with European Central Bank (ECB), maintaining its transitory stance on the pandemic-led inflation will keep the pair under pressure.
The rate markets have been estimating the likelihood of a rate hike from the Fed by July 2022 amid worries of rising inflation. The US dollar's recent journey has halted on Wednesday, with the DXY falling back to the 95.80s.
In the meantime, concerns about surging consumers have provided a headwind dampened investors' appetite for perceived riskier assets. The dilly-dally mood of investors around equity markets further solidifies concern. It has propelled the Swiss franc's safe-haven demand and further contributed to the USD/CHF pair's intraday downfall.
The broader market risk sentiment would play a key role for USD/CHF traders. Investors will also eye for Switzerland Industrial production YoY data, Import/Export MoM numbers and Trade balance figure for the month of October. Also, US Initial Jobless Claims data and ISM Philadelphia Fed Manufacturing Survey for November to find impetus.
USD/CHF technical 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
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.