USD/CHF

There are few FX pairs with a greater sensitivity to US interest rate expectations than USD/CHF, making it an excellent candidate for traders to look at ahead of the key US ISM services PMI report that will be released later in the session.

Futures traders may be heavily net-short Swiss Francs, but the rapid rise of the currency this week ahead of the SNB meeting suggests some are wary of being caught short a less-dovish central bank.

The USD has remained under pressure thanks to softer data on aggregate prompting refreshed bets of a Fed cut in September. But with EUR/USD and USD/CHF stalling at key levels, traders may need to brace for a dollar bounce.

The economic calendar is beginning to ramp up with a key US inflation report, Fed members speaking ahead of the FOMC minutes and a BOC cash rate decision. Today we look at key levels for EUR/USD, USD/CHF and crude oil.

Commodities are soaring, and of they continue to do so the US dollar could be undervalued as the case for any Fed cuts could evaporate.

The DAX finds itself at a 6-month low with Wall Street indices, with DAX futures also pointing to a weak open. Yields need to pull back for it to stand any chance of recovering, and if they do it may even take some steam out of the USD/CHF rally which is trying to tally up its 12th consecutive bullish day.

The USD posted its sixth consecutive weekly gain, which hasn’t happened since May of 2022 when the USD was on its way to punching up to another fresh bullish run that lasted until September. Next week brings high impact data out of the US and Dollar bulls have shown an impressive support response thus far.

The US Dollar has put in a bullish breakout but now the onus is on bulls to continue the move, or else this can turn out to be a false breakout similar to the bearish scenario that was seen just last month. The USD is holding at a key spot of support as this webinar looked at a number of setups related to the matter.

The key as to where USD/CHF goes next may be in the DXY.

The key as to where USD/CHF goes next may be in the DXY.

As long as the correlation holds, traders who don’t have access to trade copper can use USD/CHF as a proxy.

The central bank also said the franc is no longer overvalued; however, they stand ready to intervene in the fx market if necessary.

The USD/CHF is on watch as dollar catches bid against currencies where the central bank remains dovish

The CPI reading for Switzerland in April was 2.9% YoY, its highest level since September 2008!

This is the largest drawdown from record since financial crisis…

The US Dollar Index (DXY) and USD/CHF have a very strong positive correlation.

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