Swiss Franc weakens against US Dollar with US Inflation in focus
The Swiss Franc (CHF) is down against its major currency peers during the European trading session on Wednesday. As of writing, USD/CHF trades 0.17% higher at around 0.8125.
The Swiss Franc (CHF) has experienced a decline against the US Dollar (USD) during the European trading session on Wednesday. At the time of writing, the USD/CHF pair is trading 0.17% higher at approximately 0.8125. Analysts at ING expect a "reasonably subdued set of numbers" in the US Consumer Price Index (CPI) data, with a 0.1% month-on-month increase for headline inflation and 0.2% for core inflation.
Such a reading would bring year-on-year rates closer to the Federal Reserve's 2% target. Factors contributing to the softer inflation expectations include lower gasoline prices, rental deflation, and soft wages. A weaker-than-expected inflation data could potentially shift the market's expectations away from a September Fed rate hike, currently at a 50% probability.
USD/CHF is currently at 0.8127 and shows a mildly bullish near-term bias as it surpasses the 20-day exponential moving average (EMA) at 0.8104. The RSI is in neutral-to-positive territory, indicating steady upside pressure. As there are no apparent technical resistances, the pair could potentially rise further, with momentum and broader market cues determining its future movements.
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