Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    USD/CHF heading for 0.8500 as Swiss Franc climbs into four-month high against Greenback

    Source Fxstreet
    Dec 21, 2023 17:43
    • The Swiss Franc is testing further high ground against the US Dollar on Thursday.
    • Risk appetite is cranking up after US inflation data tips lower.
    • US Dollar declines across the board ahead of the holiday market wrap.

    The USD/CHF slipped through the 0.8600 handle on Thursday as broader markets push over the US Dollar (USD), bolstering all other major currencies across the board and lifting the Swiss Franc into a new twenty-week high against the Greenback.

    US inflation figures missed expectations on Thursday, coming on below forecasts and sparking a risk appetite rally as price growth deceleration takes hold in the US faster than most market participants anticipated, re-igniting market bets of a faster pace of Federal Reserve (Fed) rate cuts in 2024.

    At current cut, the Fed’s dot plot of interest rate expectations sees around three rate cuts next year for a combined 75 basis points in interest rate declines, but Thursday’s softer-than-expected inflation print sees markets widening the gap between the Fed’s outlook and investor expectations. Money markets are now pricing in a heady 160 bps in rate cuts through the end of next December.

    US Initial Jobless Claims ticked up slightly for the week into December 15, but much less than markets were expecting, printing at 205K versus the previous week’s 203K (revised up from 202K).

    Data focus on Thursday was squarely on US Core Personal Consumption Expenditures (PCE) for the third quarter, which declined from 2.3% to 2.0% for the quarter. US Annualized third quarter Gross Domestic Product (GDP) also softened on Thursday to round out the US data dump, coming in at 4.9% versus the forecast steady reading of 5.2%.

    With nothing else of note on the economic calendar this week for the Swiss France, market focus will be drawn squarely to US PCE Price Index figures on Friday. The US Core PCE Price Index from November is forecast to print flat at 0.2%, but odds of a downside print are increasing as preview PCE inflation data miss the mark on Thursday.

    USD/CHF Technical Outlook

    Thursday’s declines in the US Dollar dragged the USD/CHF into a new twenty-week low, slipping below the 0.8600 handle and driving towards 0.8550.

    Daily candles show price action continuing to drop away from the 200-day Simple Moving Average (SMA) descending towards 0.8900, and medium-term momentum is tilting towards the downside with the 50-day SMA confirming a bearish cross of the 200-day SMA, and slipping towards 0.8850.

    Intraday action continues to play into bearish territory, with bids facing steady rejection from the 50-hour SMA. A topside run will hit the 200-hour SMA near 0.8680, while the downside below 0.860 will see the way paved for additional declines into 2023’s lows.

    USD/CHF Hourly Chart

    USD/CHF Daily Chart

    USD/CHF Technical Levels

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    Forecasting the Coming Week: ECB meets Non-farm Payrolls… and PowellThe Greenback ended the week on a slight bearish note, as investors continued to price in a potential interest rate cut by the Fed in June, while unexpected weakness in key fundamentals also put the currency under pressure, allowing instead some breathing room in the risk-associated universe.
    Source  Fxstreet
    The Greenback ended the week on a slight bearish note, as investors continued to price in a potential interest rate cut by the Fed in June, while unexpected weakness in key fundamentals also put the currency under pressure, allowing instead some breathing room in the risk-associated universe.
    placeholder
    EUR/USD tests strength of 1.0800 as Eurozone’s inflation remains stickier than consensusThe EUR/USD pair walks on thin ice near the crucial support of 1.0800 in Friday’s European session.
    Source  Fxstreet
    The EUR/USD pair walks on thin ice near the crucial support of 1.0800 in Friday’s European session.
    placeholder
    EUR/JPY Price Analysis: Slumps and breaks key support, sellers’ eye 161.00The EUR/JPY snaps two days of gains and drops on Thursday, following hawkish remarks by a Bank of Japan (BoJ) official.
    Source  Fxstreet
    The EUR/JPY snaps two days of gains and drops on Thursday, following hawkish remarks by a Bank of Japan (BoJ) official.
    goTop
    quote