USD/CHF recovers to 0.9050 with US core PCE Inflation in focus

Source Fxstreet
May 31, 2024 08:33
  • USD/CHF gains ground near 0.9020 ahead of US PCE Inflation report for April.
  • The US core PCE is projected to have risen steadily.
  • Market sentiment is downside as China’s weak PMI data raises uncertainty over global demand outlook.

The USD/CHF pair rebounds to near 0.9050 in Friday’s European session after discovering buying interest around 0.9020. The Swiss Franc asset finds cushion as the US Dollar manages to have a firm footing amid a cautious market mood.

Market sentiment turns risk-averse amid uncertainty ahead of the United States core Personal Consumption Expenditure Price Index (PCE) data for April, which will be published at 12:30 GMT. S&P 500 futures have posted some losses in the European session. The US Dollar Index (DXY) rebounds slightly to 104.85.

In addition to the weak appeal of US equities, Asian equities also came under pressure as China’s weak National Bureau of Statistics (NBS) Manufacturing and Non-Manufacturing PMI for May missed estimates. This has raised concerns over the global economic outlook.

The core PCE Inflation data, which is the Federal Reserve’s (Fed) preferred inflation gauge, is estimated to have grown steadily by 0.3% and 2.8% on monthly and annual basis, respectively. The underlying inflation data will provide cues about whether the Fed will start reducing interest rates from their current levels in September.

Currently, the CME FedWatch tool shows that traders are mixed about the likelihood of the central bank returning to the policy normalization process in September.

Meanwhile, the Swiss Franc is slightly down against the US Dollar but performed strongly on Thursday after the release of the better-than-expected Swiss Q1 Gross Domestic Product (GDP) data. The Swiss economy expanded by 1.5% against the estimates and the former release of 1.3%. This has deepened upside risks to inflation, which could force the Swiss National Bank (SNB) to avoid subsequent rate-cut plans.

USD/CHF

Overview
Today last price 0.9057
Today Daily Change 0.0023
Today Daily Change % 0.25
Today daily open 0.9034
 
Trends
Daily SMA20 0.9091
Daily SMA50 0.9087
Daily SMA100 0.892
Daily SMA200 0.8889
 
Levels
Previous Daily High 0.9141
Previous Daily Low 0.9031
Previous Weekly High 0.9158
Previous Weekly Low 0.9079
Previous Monthly High 0.9195
Previous Monthly Low 0.8998
Daily Fibonacci 38.2% 0.9073
Daily Fibonacci 61.8% 0.9099
Daily Pivot Point S1 0.8996
Daily Pivot Point S2 0.8959
Daily Pivot Point S3 0.8886
Daily Pivot Point R1 0.9106
Daily Pivot Point R2 0.9179
Daily Pivot Point R3 0.9216

 

 

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