USD/CHF rallies near 0.8830 as US inflation data takes the spotlight
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The USD/CHF pair continues its upward momentum, reaching around 0.8830 in early European trading as markets await key US CPI data. Strength in the US Dollar, underpinned by “Trump trades” and expectations of moderated Fed rate cuts, has propelled the pair higher. However, safe-haven flows toward the Swiss Franc and geopolitical risks could limit USD/CHF gains if inflation data surprises to the downside or geopolitical tensions escalate.
USD/CHF Extends Rally as US CPI Data Looms Amid Policy Uncertainty
USD/CHF advanced to around 0.8830 on Wednesday, extending its four-day rally fueled by US Dollar strength. Market optimism surrounding the potential inflationary impact of President-elect Donald Trump’s anticipated fiscal policies has driven the US Dollar and Treasury yields higher, though traders remain cautious as they await US CPI data for October. The Consumer Price Index (CPI), expected to rise 2.6% year-over-year, will play a key role in shaping the Federal Reserve's next steps.
Potential Impact of US Inflation Data on USD/CHF
The upcoming CPI release is pivotal, with a hotter-than-expected print likely reinforcing expectations for a delay in Fed rate cuts, which could sustain USD/CHF above 0.8800. Conversely, a downside surprise may dampen these expectations, adding downward pressure on the USD and possibly supporting the Swiss Franc as a safe haven, especially amid geopolitical uncertainties tied to the Middle East.
Technical Levels to Watch in USD/CHF
Currently, USD/CHF is testing resistance around 0.8830. If sustained, the next target could be the psychological 0.8850 mark, with further upside potential if the CPI data surprises. However, any retreat may find support at the 0.8800 level, with additional support seen at 0.8765.
In summary, USD/CHF remains poised for potential volatility, as US inflation data and evolving geopolitical risks weigh on market sentiment.
USD/CHF Extends Rally as US CPI Data Looms Amid Policy Uncertainty
USD/CHF advanced to around 0.8830 on Wednesday, extending its four-day rally fueled by US Dollar strength. Market optimism surrounding the potential inflationary impact of President-elect Donald Trump’s anticipated fiscal policies has driven the US Dollar and Treasury yields higher, though traders remain cautious as they await US CPI data for October. The Consumer Price Index (CPI), expected to rise 2.6% year-over-year, will play a key role in shaping the Federal Reserve's next steps.
Potential Impact of US Inflation Data on USD/CHF
The upcoming CPI release is pivotal, with a hotter-than-expected print likely reinforcing expectations for a delay in Fed rate cuts, which could sustain USD/CHF above 0.8800. Conversely, a downside surprise may dampen these expectations, adding downward pressure on the USD and possibly supporting the Swiss Franc as a safe haven, especially amid geopolitical uncertainties tied to the Middle East.
Technical Levels to Watch in USD/CHF
Currently, USD/CHF is testing resistance around 0.8830. If sustained, the next target could be the psychological 0.8850 mark, with further upside potential if the CPI data surprises. However, any retreat may find support at the 0.8800 level, with additional support seen at 0.8765.
In summary, USD/CHF remains poised for potential volatility, as US inflation data and evolving geopolitical risks weigh on market sentiment.