- Falling US Treasury rates impact the dollar, losing ground against most currencies except the Swiss franc.
- In a mixed market attitude, the USD/CHF pares some of the previous day’s losses.
- As investors anticipate US Retail Sales, the USD/CHF is trading in a tight range of 0.9330-0.9350.
At the start of the London session, the USD/CHF price is wobbling between 0.9330 and 0.9350. Today, traders and investors look to US Retail Sales for fresh impetus.
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Remaining strong against Swiss
Except for the Swiss franc, the US dollar continues on the defensive against most currencies.
Meanwhile, US Treasury rates continue to fall. The benchmark 10-year Treasury note yield fell three basis points to 2.701 percent. It may act as a headwind for the US dollar.
Hawkish Fed
USD/CHF is shooting higher as the likelihood of the Federal Reserve raising interest rates by 50 basis points rises.
The Fed will announce its monetary policy in May. A rising US Consumer Price Index (CPI) combined with a strong labor market increases the likelihood of an aggressive hawkish posture for May and the remainder of the year.
Furthermore, Federal Reserve board member Christopher Waller stated that he expects interest rates to climb significantly in the coming months.
USD/CHF data events ahead
Today’s focus in the United States will be on Retail Sales, followed by weekly Claims, Business Inventories, and the Flash print of Consumer Sentiment for the current month.
The Swiss docket remains calm for now.
What’s next to watch for USD/CHF price?
So far, the greenback’s price action has been determined by the Fed’s likelihood of a tighter rate path and geopolitics. Additionally, the case for a higher dollar is bolstered by high US rates and the US economy’s robust performance.
USD/CHF price technical analysis: The tussle of bulls and bears
The USD/CHF price is traveling between 0.9330 and 0.9350. The 4-hour chart shows a bullish crossover of 50 and 100 SMAs. The price is above 20, 50, 100, and 200 SMAs, signifying a bullish trend.
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The next key resistance level for the Swisse lies around 0.9364. If the price goes above this level, we can see the next relevant resistance near the 0.9381 level.
On the flip side, the next support is at 0.9321. If the price declines below this level, we can see it further drifting towards the 0.9297 level.
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Saqib Iqbal
