USD/CHF rebounds from 0.9220 as focus shifts to US GDP – Crypto News – Crypto News
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USD/CHF Price Analysis: Advances firmly, reclaims 0.9500 USD/CHF Price Analysis: Advances firmly, reclaims 0.9500

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USD/CHF rebounds from 0.9220 as focus shifts to US GDP – Crypto News

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  • USD/CHF has picked up demand after dropping below 0.9220 as volatility might trigger ahead of US GDP data.
  • Tuesday’s upbeat preliminary US S&P PMI data failed to infuse confidence in the USD Index.
  • Accelerating interest rates by the Fed is dampening firms’ production activities.

The USD/CHF pair has sensed buying interest after dropping below the critical support of 0.9220 in the early Asian session. The Swiss franc asset is gaining traction as investors are shifting their focus toward the release of the United States Gross Domestic Product (GDP) data, which is scheduled for Thursday.

S&P500 futures are displaying losses after Tuesday’s choppy trade, depicting a caution for the risk-sensitive assets. A decline in the risk appetite of the market participants has improved the appeal for safe-haven assets. The US Dollar Index (DXY) is building a cushion around 101.50 after a sell-off. The 10-year US Treasury yield is still hovering above 3.45%.

Tuesday’s upbeat preliminary United States S&P PMI data failed to infuse confidence in the USD Index for continuing its upside momentum. The Manufacturing PMI landed at 46.8, higher than the expectations of 46.1 and the earlier release of 46.2. Also, the Services PMI remained upbeat and scaled higher to 46.6 against the consensus of 44.5 and the prior release of 44.7.

For further guidance, US GDP data will be better guide. USD/CHF for further action. As per the projections, a contraction is expected in preliminary GDP for the fourth quarter of CY2022 to 2.8% from 3.2% reported earlier. This could be the result of accelerating interest rates by the Federal Reserve (Fed), which has forced firms to dodge borrowings at a higher cost to avoid higher interest obligations.

On the Swiss Franc front, investors are awaiting the release of the ZEW Survey- Expectations (Jan), which will release on Wednesday. The economic data that display present business conditions and employment conditions is expected to trim to -47.6 from the earlier release of -42.8. A weaker-than-projected qualitative data could impact the Swiss Franc ahead.

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