USD/CHF finds some support above 0.9100 amid the cautious mood, geopolitical tensions eyed

Source Fxstreet
  • USD/CHF edges lower to 0.9105 amid the softer USD on Wednesday. 
  • The uncertainties and escalating tensions in the Middle East might benefit the Swiss Franc (CHF). 
  • Fed’s Powell stated that monetary policy needs to be restrictive for longer, triggering the hope of delaying interest rate cuts. 

The USD/CHF pair faces some selling pressure to 0.9105 on Wednesday during the early European session. The downtick of the pair is supported by the decline of the US Dollar Index (DXY) to 106.20. Additionally, the ongoing geopolitical tensions in the Middle East continue to support the Swiss Franc (CHF), a traditional safe-haven currency. 

Late Tuesday, National Security Advisor Jake Sullivan said that new sanctions targeting Iran and sanctions against entities supporting the Islamic Revolutionary Guard Corps and Iran's Defense Ministry will be imposed in the coming days. Sullivan added that these new measures will "continue a steady drumbeat of pressure" to contain and degrade Iran's military capacity and effectiveness and confront the full range of its problematic behaviors. Meanwhile, western leaders have urged Israel to exercise restraint against escalation. Market players will closely monitor the development surrounding Israel and Iran tensions. Any escalating tensions might boost safe-haven assets like CHF and create a headwind for the USD/CHF pair. 

On the other hand, strong US economic data and hawkish comments from the US central bank remain to support the Greenback for the time being. The Federal Reserve's Jerome Powell stated that the US economy has not seen inflation come back to the 2% target and that monetary policy needs to be restrictive for longer. These remarks further dampen investors' hopes for meaningful rate cuts this year and lift the USD against its rivals. According to the CME FedWatch Tool, financial markets have priced in 67% odds that the Fed will cut interest rates in September. 

USD/CHF

Overview
Today last price 0.9102
Today Daily Change -0.0028
Today Daily Change % -0.31
Today daily open 0.913
 
Trends
Daily SMA20 0.9041
Daily SMA50 0.8901
Daily SMA100 0.8761
Daily SMA200 0.8827
 
Levels
Previous Daily High 0.9142
Previous Daily Low 0.9112
Previous Weekly High 0.9148
Previous Weekly Low 0.9012
Previous Monthly High 0.9072
Previous Monthly Low 0.873
Daily Fibonacci 38.2% 0.9131
Daily Fibonacci 61.8% 0.9123
Daily Pivot Point S1 0.9113
Daily Pivot Point S2 0.9097
Daily Pivot Point S3 0.9083
Daily Pivot Point R1 0.9144
Daily Pivot Point R2 0.9159
Daily Pivot Point R3 0.9175

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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