USD/CHF remains under pressure below the 0.8600 mark amid USD weakness

USD/CHF remains under pressure around 0.8600 amid the weakening of the USD.
As expected, the Federal Reserve (Fed) raised interest rates by 25 basis points (bps).
The headlines surrounding the Chinese stimulus plan, Sino-US relations remain in focus.

Lallalit Srijandorn FXStreet

The USD/CHF pair remains under pressure below the 0.8600 region during the early Asian session on Thursday. The US dollar is weakening broadly following the Federal Open Market Committee (FOMC) meeting. The US dollar Index (DXY), a measure of the value of the Greenback against six other major currencies, dropped to 100.85. The pair currently trades around 0.8596, down 0.13% for the day.

Following the FOMC meeting, the central bank raised interest rates by 25 basis points (bps) to a target range of 5.25%–5.5%, as expected. Federal Reserve (Fed) Chairman Jerome Powell stated that the FOMC will assess the totality of incoming data, along with its implications for economic activity and inflation. He added that it's possible to raise the Fed funds rate again at the September meeting if the data warrants it. After the FOMC meeting and statement, the US dollar weakened broadly, which acted as a headwind for USD/CHF.

On the Swiss franc front, the Swiss ZEW Survey Expectations data by the Centre for European Economic Research reported that the figure came in at -32.6 versus -30.8 prior and worse-than-expected 31.1.

Meanwhile, concern is high over whether China will deliver on its policy pledges, as China is the world's second-biggest economy. On Tuesday, Chinese news agency Xinhua reported that Chinese policymakers would take up economic policy adjustments, strengthening confidence and mitigating risks. Market players will keep an eye on the headlines surrounding the Chinese stimulus plan. The Swiss Franc, a traditional safe-haven currency, could benefit from the absence of this development. Also, the renewed tension between China and the US remains in focus.

Moving on, the KOF Leading Indicator for July could offer clues about the Swiss Franc movement. Market players will also monitor US Advance GDP QoQ and the core Personal Consumption Expenditure (PCE) Price Index MoM for fresh impetus. Traders will monitor this development and find opportunities around the USD/CHF pair.

USD/CHF

Overview
Today last price	0.8584
Today Daily Change	-0.0024
Today Daily Change %	-0.28
Today daily open	0.8608

Trends
Daily SMA20	0.8764
Daily SMA50	0.8915
Daily SMA100	0.898
Daily SMA200	0.9198

Levels
Previous Daily High	0.8656
Previous Daily Low	0.8598
Previous Weekly High	0.8684
Previous Weekly Low	0.8555
Previous Monthly High	0.912
Previous Monthly Low	0.8902
Daily Fibonacci 38.2%	0.862
Daily Fibonacci 61.8%	0.8634
Daily Pivot Point S1	0.8585
Daily Pivot Point S2	0.8562
Daily Pivot Point S3	0.8526
Daily Pivot Point R1	0.8644
Daily Pivot Point R2	0.868
Daily Pivot Point R3	0.8703

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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