• USD/CHF declines for the fourth consecutive day as bears attack June’s low.
  • Yields drown the US dollar amid “technical recession”, SNB’s Q2 result also favors bears.
  • Swiss KOF Leading Indicator, US PCE Price Index for July could direct immediate moves.

USD/CHF takes offers to refresh the monthly low near 0.9515 heading into Friday’s European session amid broad US dollar weakness.

The Swiss currency (CHF) pair’s latest losses could be linked to the recession fears in the US and extended south-run by the US Treasury yields. Also exerting downside pressure on the USD/CHF prices is the cautious mood ahead of the Fed’s preferred inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index, expected 0.5% MoM for July versus 0.3% prior.

It’s worth noting that the US Dollar Index (DXY) drops to the lowest level since July 05 as the Treasury yields remain pressured around a three-month low amid recession fears. The US 10-year Treasury yields fade early Asian session rebound while declining to the fresh low since April, near 2.66% at the latest.

Following Fed Chair Jerome Powell’s teasing of “neutral rates”, USD/CHF traders should have traced the Flash readings of the US Q2 GDP, which marked the “technical recession” by declining for the second consecutive time, to decline further. That said, the first estimations of the US Q2 GDP printed -0.9% Annualized figure versus 0.5% expected and -1.6% prior. Further, the US Initial Jobless Claims also rose more than expected by 253K, with 256K during the week ended on July 22.

Elsewhere, US policymakers, including Fed’s Powell and Treasury Secretary Janet Yellen, tried to tame the economic recession fears but fail to succeed of late.

Even so, the downbeat yields and challenges for the hawkish Fed moves appear to have favored the US stock futures, as well as the Asia-Pacific shares, as USD/CHF traders await the Swiss KOF Leading Indicator for July, expected 95.2 versus 96.9 prior.

On a different page, the Swiss National Bank (SNB) posts the biggest ever first-half loss per Reuters and should have ideally weighed on the USD/CHF prices but did not. “The Swiss National Bank reported a first-half loss of 95.2 billion Swiss francs ($100.08 billion) on Friday, the biggest six-month loss posted by the central bank since it was set up in 1907,” said Reuters. The news also mentioned that the SNB's results were hit by stock market declines, falling bond prices and the franc's appreciation which severely dented the value of its massive foreign currency holdings.

Technical analysis

A clear downside break of the four-month-old ascending trend line, near 0.9600 by the press time, directs USD/CHF sellers towards the 16-month-long horizontal support zone near 0.9595-72.

Additional important levels

Today last price 0.9512
Today Daily Change -0.0039
Today Daily Change % -0.41%
Today daily open 0.9551
Daily SMA20 0.9702
Daily SMA50 0.9688
Daily SMA100 0.9614
Daily SMA200 0.9412
Previous Daily High 0.9632
Previous Daily Low 0.9545
Previous Weekly High 0.979
Previous Weekly Low 0.96
Previous Monthly High 1.005
Previous Monthly Low 0.9495
Daily Fibonacci 38.2% 0.9578
Daily Fibonacci 61.8% 0.9599
Daily Pivot Point S1 0.9519
Daily Pivot Point S2 0.9488
Daily Pivot Point S3 0.9432
Daily Pivot Point R1 0.9607
Daily Pivot Point R2 0.9664
Daily Pivot Point R3 0.9695



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD continues to decline toward 1.0250 during the American trading hours on Friday. After the data published by the UOM showed that the long-run inflation outlook rose to 3% in August from 2.9% in July, the dollar gathered strength against its rivals, weighing on the pair.


GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD is trading deep in negative territory near 1.2100 during the American session on Friday. With the UoM's Consumer Sentiment Survey pointing to a modest increase in the long-run inflation outlook, the US Dollar Index extended its rally, reflecting a broad dollar strength.


Gold clings to modest gains above $1,790

Gold clings to modest gains above $1,790

Gold stays relatively resilient on Friday and trades modestly higher on the day above $1,790. Although the greenback continues to outperform its rivals on the latest US data, falling US Treasury bond yields help XAU/USD hold in positive territory.

Gold News

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shytoshi Kusama, the project leader of Shiba Inu announced the launch of Shiba Eternity for Vietnamese players. The game is available for testing and the team has asked users for their review. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!