- USD/CHF trades modestly higher on Thursday in the early Asian trading hours.
- US Dollar Index touches a four-week high above 93.40.
- The Swiss franc remains on backfoot on improved risk-sentiment, SNB interest rate decision due later in the day.
The USD/CHF pair treads water on Thursday in the Asian session. After posting gains in the overnight session, the pair hovered in a very narrow trade band with no meaningful traction. At the time of writing, USD/CHF is trading at 0.9261, up 0.01% for the day.
The buying pressure in the greenback keeps USD/CHF on the higher side. The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, stays strong above 93.40 for the first time in the past four-week. Investors digested the latest Fed’s statement.
The US Federal Reserve kept its short term key rates unchanged in the range of 0% to 0.25% on Wednesday and said a “moderation” in asset purchasing would happen for further economic progress. The Federal Open Market Committee (FOMC) signalled a reduction in its $120 billion monthly bond purchase this year. In addition to that, US Fed Chair Jerome Powell hinted that tapering could occur as soon as in November or end in mid-2022.
Furthermore, the FOMC economic projection painted a rosy picture about the economy as the Fed hiked its interest-rate outlook to 1% and 1.8% in 2023 and 2024 respectively. The economy is expected to expand by 3.8% and 2.5% in 2023 and 2024 as compared to the previous 3.3% and 2.4% projections respectively.
It is worth noting that, S&P 500 Futures is trading at 4,392.25, up 0.19% gains.
On the other hand, the Swiss franc pares its previous gains on improved risk sentiment. On the economic data side, Switzerland's Current Account expanded to CHF 10.51 on a quarterly basis as compared to CHF 3.21 billion. As for now, traders wait for the Swiss National Bank (SNB) interest rate decision, US Initial Jobless Claims, and Markit manufacturing Purchasing Managers Index( PMI) to gain fresh trading impetus.
USD/CHF additional 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
EUR/USD extends losses on dovish remarks from ECB members, trades near 1.0780
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD trades sideways above 1.2600 amid quiet session
The GBP/USD pair trades sideways around 1.2622 during the early Friday. The market is likely to be mute in light trading on Good Friday. Later in the day, the US Core Personal Consumption Expenditures Price Index will be released.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.