USD/CHF seems baffled around 0.8750, investors await US CPI for fresh guidance

USD/CHF turns topsy-turvy around 0.8750 ahead of US inflation data.
US equities witnessed buying interest after Fed Goolsbee said Fitch’s downgrade to the US debt won’t make any difference.
A tight labor market in the Swiss economy could keep inflation higher than the desired rate.

Sagar Dua FXStreet

The USD/CHF pair turns directionless around 0.8750 in the European session, following the footprints of the US Dollar Index (DXY). The Swiss Franc asset struggles for a decisive move as investors are sidelined ahead of the United States Consumer Price Index (CPI) data, which will be published on Thursday at 12:30 GMT.

S&P500 futures generate losses in London amid cautious market mood. US equities witnessed buying interest on Monday after Chicago Federal Reserve (Fed) President Austan D. Goolsbee said Fitch’s downgrade to the US government's long-term debt rating won’t make any difference.

The US Dollar Index (DXY) struggles to climb above the immediate resistance of 102.40 as investors need fresh cues about September’s monetary policy from the Fed. This week, investors will keep an eye on the US inflation data.

As per the estimates, headline and core CPI maintained a pace of 0.2% in July. On an annualized basis, headline CPI rebounded to 3.3% vs. June’s print of 3.0%. Contrary, core inflation that excludes volatile food and oil prices decelerated marginally to 4.7% against a prior reading of 4.8%. A rebound in inflationary pressures would force the Fed to discuss more interest rate hikes. Apart from the consumer inflation data, Friday’s Producer Price Index (PPI) will also remain in focus.

In the Swiss economy, a tight labor market could keep inflation higher than the desired rate. The Unemployment Rate for July remained near historic lows at 1.9%. This would force the Swiss National Bank (SNB) to lift interest rates further.

USD/CHF

Overview
Today last price	0.8746
Today Daily Change	0.0017
Today Daily Change %	0.19
Today daily open	0.8729

Trends
Daily SMA20	0.8677
Daily SMA50	0.8867
Daily SMA100	0.8938
Daily SMA200	0.9149

Levels
Previous Daily High	0.8774
Previous Daily Low	0.8718
Previous Weekly High	0.8806
Previous Weekly Low	0.8665
Previous Monthly High	0.9005
Previous Monthly Low	0.8552
Daily Fibonacci 38.2%	0.8752
Daily Fibonacci 61.8%	0.8739
Daily Pivot Point S1	0.8707
Daily Pivot Point S2	0.8684
Daily Pivot Point S3	0.8651
Daily Pivot Point R1	0.8762
Daily Pivot Point R2	0.8796
Daily Pivot Point R3	0.8818

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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