Connect with us

Hi, what are you looking for?

Smart Success Strategy – Investing and Stock NewsSmart Success Strategy – Investing and Stock News

Economy

USD/CHF Edges Up Amid 3.2% US CPI Surge

USD/CHF Edges Up Amid 3.2% US CPI Surge

Quick Look

USD/CHF trades within a tight range of 0.8765-0.8780 during Asian hours on Wednesday.
US CPI inflation in February surpasses expectations, lifting the USD.
Safe-haven demand amidst geopolitical tensions could favour the CHF.
The pair slightly gains, trading near 0.8776, up by 0.02%.

The US dollar shows resilience as February’s CPI inflation data outpaces expectations. The Labor Department’s Tuesday report highlights a year-on-year CPI increase of 3.2%, marking a slight rise from January’s 3.1%. This monthly uptick to 0.4% from 0.3% reflects sustained inflationary pressures. Notably, Core CPI, which excludes food and energy, also exceeded forecasts by rising 0.4% month-on-month. This robust inflation scenario may prompt Federal Reserve officials to delay interest rate cuts, potentially underpinning the USD‘s strength. Fed Chair Jerome Powell’s recent remarks suggest rate cuts are on the horizon, contingent on further inflation data aligning with the 2% target. Investor sentiment, influenced by a 70% rate cut expectation for June, mirrors this cautious optimism.

CHF as a Safe Haven Amid Uncertainty

Despite the USD’s buoyancy, the CHF remains a focal point for investors seeking refuge amidst uncertainty. Geopolitical tensions, notably in the Middle East, alongside a general risk-averse mood, heighten the appeal of safe-haven assets like the CHF. Such dynamics could pose challenges to the USD/CHF pair, potentially limiting its upside momentum. The market’s flight to safety, as reflected in the CHF’s demand, underscores the intricate balance between inflation-driven strength in the USD and geopolitical risk-induced safe-haven flows towards the CHF.

Technical Outlook and Market Sentiment

The technical landscape offers insight into the USD/CHF pair’s immediate trajectory. Initially, the 1-hour chart reveals a consolidation phase, hinting at potential seller dominance below the critical downward trendline. Subsequently, a breach below the upward counter-trendline could embolden sellers, eyeing a drop beneath the 0.8728 support level. Conversely, buyers might exploit the upward counter-trendline and the 0.8728 benchmark to initiate a rally towards new highs. Therefore, this technical analysis suggests a delicate market sentiment, where the interplay between bullish and bearish forces will dictate the pair’s short-term direction amidst broader economic and geopolitical influences.

Furthermore, the USD/CHF pair’s narrow trading band reflects a complex interplay of inflationary pressures, monetary policy expectations, and geopolitical uncertainties. As investors navigate this landscape, the balance between safe-haven demand for the CHF and the inflation-boosted USD will be critical in shaping the pair’s near-term movements.

The post USD/CHF Edges Up Amid 3.2% US CPI Surge appeared first on FinanceBrokerage.

Enter Your Information Below To Receive Latest News, And Articles.



    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    The energy revolution is here to stay, and electric vehicles (EVs) have become part of the mainstream narrative. Despite geopolitical tensions and uncertainty, the...

    Editor's Pick

    Overview Mexico’s Sinaloa state hosts a number of prolific silver and gold mines, including McEwen Mining’s (TSX:MUX) El Gallo Complex, Americas Gold and Silver’s...

    Editor's Pick

    Uranium is an important energy sector commodity, and its rising value has attracted investor interest. 2023 has seen uranium prices solidly above the important...

    Investing

    A new survey shows that the presidential race between former President Donald Trump and President Biden is thin, but Biden faces a deficit in...

    Disclaimer: smartsuccessstrategy.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 smartsuccessstrategy.com