USD/CHF remains under selling pressure below 0.9150 following Swiss CPI data – Crypto News – Crypto News
Connect with us
USD/CHF eases from two-week high, fails ahead of 0.9600 mark amid risk-off mood USD/CHF eases from two-week high, fails ahead of 0.9600 mark amid risk-off mood

others

USD/CHF remains under selling pressure below 0.9150 following Swiss CPI data – Crypto News

Published

2 years ago

on

  • USD/CHF weakens to 0.9110 following Swiss inflation data on Thursday. 
  • The Swiss CPI inflation climbed to 1.4% YoY in April from a rise of 1.0% in March.
  • The Fed has kept its benchmark lending rate steady at a 23-year high since July 2023. 
  • The US Nonfarm Payrolls (NFP) for April will be in the spotlight on Friday. 

The USD/CHF pair faces some selling pressure on Thursday, supported by the hotter-than-expected Swiss inflation data. The pair currently trades around 0.9110, down 0.48% on the day. Furthermore, the softer US Dollar (USD) came after the US Federal Reserve (Fed) held interest rates at their current levels, adding further downside to the pair. 

The inflation in Switzerland came in hotter than expected in April, according to the Federal Statistical Office of Switzerland on Thursday. The Swiss Consumer Price Index (CPI) inflation rose to 1.4% YoY in April from a rise of 1.0% in March. On a monthly basis, the Swiss CPI figure increased by 0.3% MoM in April, above the market consensus of 0.1%. In response to the data, the Swiss Franc (CHF) attracts some buyers and drags the USD/CHF pair to the 0.9100 support level. 

The US Fed on Wednesday decided to leave its interest rate unchanged as inflation has remained stubbornly high in recent months. The Fed Chair Jerome Powell noted that he doesn’t have a plan to cut interest rates until the Fed has “greater confidence” that price increases are slowing sustainably to its 2% target. During the press conference, Fed’s Powell said that “there has been a lack of further progress.”, adding that interest rates are “restrictive” enough and that it was “unlikely” that the Fed would raise rates again in this cycle. This, in turn, weighs on the Greenback and creates a headwind for the USD/CHF pair. 

Investors will closely monitor the US employment data on Friday. The Nonfarm Payrolls (NFP) for April is expected to show 243K job additions in the US economy, while the Unemployment Rate is projected to remain steady at 3.8% in the same period. 

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending