USD/CHF rises to two-day highs near 0.9250

Swiss Franc among worst performers on Friday.
USD/CHF heads for weekly loss, but off lows.
EUR/CHF extends rebound, approaches parity.

Matías Salord FXStreet

The USD/CHF is up on Friday, but still down for the week. The pair surged to 0.9234, hitting the highest level in two days and then pulled back toward 0.9200, amid a weaker US Dollar.

On a weekly basis the pair is down by less than 50 pips, after recovering from 0.9080. The weekly close far from the bottom shows some difficulties for the Swiss franc extending the rally.

Dollar lows

The greenback lost momentum following the London fix and US economic data. Existing Home Sales dropped in December from 4.08 million to 4.02 million in December, above the 3.96 million of market consensus.

Kansas City Federal Reserve President Esther George said in Friday the US Economy is responding to Fed’s actions. She added it is encouraging to see inflation coming down but warned they have to be more patient in assessing if inflation is on a sustainable path down.

Swiss National Bank (SNB) Chairman Thomas Jordan said on Friday that “absolute priority should be to bring inflation down to price stability level.” He added that he won’t hesitate to reinstate negative interest rates to deal with negative inflation.

Analysts at Commerzbank, forecast the USD/CHF will move higher over the next months, reaching 0.95 by June and see it ending the year at 0.94 and resuming the upside in 2024.

The EUR/CHF rose sharply on Friday, with EUR/CHF approaching again the parity area. “Inflation in Switzerland has recently become more benign, which means that the SNB could soon have reached the end of its rate hike cycle. The ECB, on the other hand, is likely to put the brakes on monetary policy for a bit longer. We have therefore adjusted our EUR/CHF forecast slightly upward”, said analyst at Commerzbank. They see the cross at 1.01 by June and 1.02 in September.

Technical levels

USD/CHF

Overview
Today last price	0.9221
Today Daily Change	0.0064
Today Daily Change %	0.70
Today daily open	0.9157

Trends
Daily SMA20	0.9269
Daily SMA50	0.9349
Daily SMA100	0.9602
Daily SMA200	0.964

Levels
Previous Daily High	0.919
Previous Daily Low	0.9147
Previous Weekly High	0.9363
Previous Weekly Low	0.9167
Previous Monthly High	0.9471
Previous Monthly Low	0.9201
Daily Fibonacci 38.2%	0.9163
Daily Fibonacci 61.8%	0.9173
Daily Pivot Point S1	0.914
Daily Pivot Point S2	0.9122
Daily Pivot Point S3	0.9097
Daily Pivot Point R1	0.9182
Daily Pivot Point R2	0.9207
Daily Pivot Point R3	0.9225

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD trims losses, disputes 1.3400

GBP/USD retreats after reaching a three-week high above 1.3430 and puts the 1.3400 region to the test on Thursday. Although easing political uncertainty in the UK helps the quid limit its downside, escalating tensions in the Middle East support the Greenback, keeping Cable under scrutiny.

EUR/USD faces resistance around 1.1450

EUR/USD keeps the bid bias although it seems to have met a tough hurdle around 1.1450 on Thursday. The pair’s advance follows the bearish tone in the US Dollar despite escalating tensions in the Middle East and a broad-based cautious stance from market participants.

Gold climbs to two-day peaks near $4,130

Gold stages a modest rebound on Thursday, setting aside a three-day losing streak and managing to surpass the $4,100 mark per troy ounce. However, steady geopolitical tensions have revived concerns over persistently high global inflation, reinforcing expectations of higher rates across the board and somewhat curtailing the yellow metal’s upside potential.

Bitcoin stalls as mixed ETF flows, renewed US-Iran tensions cap upside

Bitcoin trades at $63,000 on Thursday, recovering slightly after facing rejection near $64,000. Renewed geopolitical uncertainty has dampened risk appetite, limiting BTC upside potential.

Japan may be changing its Yen strategy, but markets don’t look scared

Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.