USD/CHF surges above 0.8660 as US economy turns out surprisingly resilient

USD/CHF gallops above 0.8660 as upbeat US economic data supports interest rate hike by Fed in September.
US GDP for the second quarter and Durable Goods Orders for June surprisingly beat expectations.
More action is expected in the US Dollar Index as the core PCE Price Index for June will release on Friday.

Sagar Dua FXStreet

The USD/CHF pair has recovered swiftly above the critical resistance of 0.8660 as the United States Gross Domestic Product (GDP) for the second quarter and Durable Goods Orders for June surprisingly beat expectations. Also, jobless claims registered by individuals for the first time were below consensus.

S&P500 opens on a bullish note as investors hope that the interest rate hike of 25 basis points (bps) by the Federal Reserve (Fed) announced on Wednesday was the last one in the current tightening cycle. Sentiment for US equities is positive while appeal for risk-sensitive currencies has faded.

The US Dollar Index (DXY) has printed a fresh two-week high at 101.71 as upbeat economic indicators have renewed hopes of one more interest rate hike from the Fed in its September meeting. Fed Chair Jerome Powell conveyed in his commentary that the interest rate decision for September will be data-dependent.

The upbeat expansion of GDP in the second quarter, robust demand for Durable Goods, and elongated tight labor market conditions indicate that the Fed could look for raising interest rates further. Economic resilience indicates that inflationary pressures could remain stubborn and more interest rates would be warranted.

More action is expected in the US Dollar Index as the core Personal Consumption Expenditure (PCE) Price Index for June will release on Friday at 12:00 GMT.

On the Swiss Franc front, more interest rates by the Swiss National Bank (SNB) are in the pipeline as inflation would take time to come below 2% steadily.

USD/CHF

Overview
Today last price	0.8666
Today Daily Change	0.0058
Today Daily Change %	0.67
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

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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