- USD/CHF trades at 0.8977, a marginal gain of 0.01%, as investors await the Federal Reserve’s policy decision and updated economic projections.
- Market odds for a November rate hike by the Fed dip below 30%, potentially setting the stage for USD weakness.
- Swiss National Bank expected to hike rates by 25 basis points to 2%.
The US Dollar (USD) posts minuscule gains against the Swiss Franc (CHF), ahead of monetary policy decisions by the US Federal Reserve (Fed) and the Swiss National Bank (SNB). At the time of writing, the USD/CHF is trading at 0.8977, gaining 0.01% after hitting a daily low of 0.8949.
US Dollar and Swiss Franc locked in a tight range ahead of pivotal monetary policy updates from the Federal Reserve and Swiss National Bank
Market sentiment improved, as shown by Wall Street’s finishing with solid gains as investors await the Federal Reserve to keep rates unchanged at Wednesday’s meeting. The Fed Chair Powell and Co will also update its Summary of Economic Projections (SEP), which drafts the US central bank economic outlook for the remainder of 2023 and subsequent years.
The outcome of the US central bank is crucial, as investors expect no further hikes, as odds for the November meeting dropped below 30%, as outlined by the CME FedWatch Tool. That could pave the way for US Dollar weakness, hence a headwind for the USD/CHF pair.
On the other hand, the Swiss National Bank (SNB) would likely hike rates by 25 bps, towards 2%, seen as investors as peak rates, according to money market futures. Although the latest inflation report in Switzerland witnessed a 1.6% YoY uptick, it remains below the central bank’s 2% target. Nevertheless, the SNB would likely maintain its restrictive stance to stabilize prices.
USD/CHF Price Analysis: Technical outlook
From a technical standpoint, the major is set to extend its rally, reaching a new multi-month high of around 0.8982. Buyers are still eyeing the 0.9000 figure, followed by the 200-day Moving Average (DMA) at 0.9038. On the flip side, if USD/CHF breaks below 0.8949, that could open the door to test 0.8900.
|Today last price||0.8972|
|Today Daily Change||-0.0004|
|Today Daily Change %||-0.04|
|Today daily open||0.8976|
|Previous Daily High||0.8978|
|Previous Daily Low||0.8946|
|Previous Weekly High||0.8978|
|Previous Weekly Low||0.8897|
|Previous Monthly High||0.8876|
|Previous Monthly Low||0.869|
|Daily Fibonacci 38.2%||0.8966|
|Daily Fibonacci 61.8%||0.8958|
|Daily Pivot Point S1||0.8956|
|Daily Pivot Point S2||0.8935|
|Daily Pivot Point S3||0.8924|
|Daily Pivot Point R1||0.8988|
|Daily Pivot Point R2||0.8998|
|Daily Pivot Point R3||0.9019|
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.