USD/CHF struggles to retrace its recent losses, hovers around 0.8620

Source Fxstreet
  • USD/CHF could face downward pressure due to the downward US Treasury yields.
  • An improved US balance sheet weighs on the US yields, undermining the US Dollar.
  • Swiss Real Retail Sales and the ZEW Survey may provide cues on Swiss economic health on Wednesday.

USD/CHF attempts to retrace its recent losses, inching higher around 0.8620 during the Asian session on Tuesday. However, the US Dollar (USD) has faced a challenge against the Swiss Franc (CHF) due to the decline in US Treasury yields. The release of an improved US balance sheet has supported prices for US Treasury bonds, which, in turn, puts downward pressure on US yields.

Since October 2023, the decline in US yields has played a role in bolstering the sustainability of the US Treasury. Additionally, enhanced economic growth has resulted in improved tax receipts. The US Treasury Department has recently disclosed its intention to borrow $760 billion in the first quarter, marking a decrease from the initial estimate of $816 billion in October.

The US Dollar Index (DXY) snaps its two-day losing streak, which could be attributed to the risk aversion sentiment on the concern over the escalated tension in the Middle East. US President Joe Biden’s administration is anticipated to authorize military strikes in response to the recent drone attack on a US outpost in Jordan, resulting in the death of three US troops and injuries to at least 24.

Market observers will closely monitor Tuesday's releases of the Housing Price Index and Consumer Confidence figures, seeking additional insights into the market landscape following the scheduled Federal Open Market Committee (FOMC) statement on Wednesday, January 31.

Acknowledging the robust Swiss Franc's impact on inflation containment and challenges faced by domestic companies, SNB President Thomas Jordan expressed uncertainty about the Swiss National Bank's (SNB) stance on the persistent strength of the currency. Attention will be directed towards Wednesday's Real Retail Sales and the ZEW Survey to gauge the overall health of the Swiss economy.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US September PPI Preview: Will Inflation Surprise Again? US Stocks, Dollar and Gold Face Key Test On October 15, US Eastern Time, the U.S. is set to release the September Producer Price Index (PPI). The September CPI released this Wednesday was notably higher than market expectations,
Author  TradingKey
11 hours ago
On October 15, US Eastern Time, the U.S. is set to release the September Producer Price Index (PPI). The September CPI released this Wednesday was notably higher than market expectations,
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 15, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 15, 2026. Read on for the details.
Author  Mitrade
13 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 15, 2026. Read on for the details.
placeholder
Gold defends $4,100 as BofA targets a break below $4,000 — why the Middle East bid is missingSpot gold flushed to $4,099.89, a whisker above October's $4,090 low, then rebounded to close at $4,138.25 (+0.82%) — even as US CPI ran hot. Bank of America sees gold below $4,000 within three months, citing shrinking demand and official-sector selling. Here are the levels, the drivers and what would flip the script.
Author  Irene Q.
13 hours ago
Spot gold flushed to $4,099.89, a whisker above October's $4,090 low, then rebounded to close at $4,138.25 (+0.82%) — even as US CPI ran hot. Bank of America sees gold below $4,000 within three months, citing shrinking demand and official-sector selling. Here are the levels, the drivers and what would flip the script.
placeholder
US September CPI recap: inflation hits 3.7% as core runs hot — is an October Fed hike back on the table?September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
Author  Irene Q.
14 hours ago
September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
placeholder
Today’s Market Recap: September CPI Beat Ignites Rate-Hike Concerns; U.S. Stocks Fall Broadly, Oracle Drops Over 8%, SK Hynix Slips More Than 6%On October 14, Eastern Time, U.S. September CPI data came in higher than market expectations, fueling expectations of a Fed rate hike in October and dampening mar
Author  TradingKey
19 hours ago
On October 14, Eastern Time, U.S. September CPI data came in higher than market expectations, fueling expectations of a Fed rate hike in October and dampening mar
Related Instrument
goTop
quote