USD/CHF Advances Toward 0.9100 Due To Lower Swiss Industrial Production

  Photo by Claudio Schwarz on Unsplash
 

  • USD/CHF continues to advance after the release of lower Swiss production data on Friday.
  • Swiss Industrial Production declined by 3.1% in Q1, marking the second consecutive quarter of declining industrial activity.
  • The US Dollar appreciates Fed officials suggesting prolonging higher rates as pricing pressure persists in the US economy.

USD/CHF extends its gains for the second day, trading around 0.9080 during the early European hours on Friday. The Swiss Franc (CHF) depreciated against the US Dollar (USD) after the release of the lower Industrial Production released by Swiss Statistics.

The volume of production of Industries in Switzerland declined by 3.1% in the first quarter, following an upwardly revised decline of 0.5% in the previous quarter. This marks the second consecutive quarter of declining industrial activity. On a seasonally adjusted quarterly basis, industrial production dropped by 1% in Q1, compared to an upwardly revised decline of 1.1% in the prior quarter.

On the USD front, the Federal Reserve (Fed) maintains a cautious stance regarding inflation and the potential for rate cuts in 2024, which contributes support for the US Dollar (USD), underpinning the USD/CHF pair.

Reuters reports on Thursday, Atlanta Fed President Raphael Bostic said at an event in Jacksonville that the need for patience with interest rates, noting that substantial pricing pressure persists in the US economy. Additionally, Cleveland Fed President Loretta Mester indicated that it might take longer than anticipated to confidently ascertain the inflation trajectory, suggesting that the Fed should maintain its restrictive stance for an extended period.

However, the higher-than-expected Initial Jobless Claims were released by the US Department of Labor on Thursday. This has contributed to the market expectations of the Federal Reserve’s (Fed) delivering a rate cut in September. The number of Americans filing new claims for jobless benefits rose to 222,000 for the week ending May 10, surpassing the market consensus of 220,000 but below the previous week's figure of 232,000.
 

USD/CHF

OVERVIEW
Today last price 0.9087
Today Daily Change 0.0025
Today Daily Change % 0.28
Today daily open 0.9062
TRENDS
Daily SMA20 0.9098
Daily SMA50 0.9031
Daily SMA100 0.8857
Daily SMA200 0.8873
LEVELS
Previous Daily High 0.9063
Previous Daily Low 0.8988
Previous Weekly High 0.9099
Previous Weekly Low 0.9036
Previous Monthly High 0.9195
Previous Monthly Low 0.8998
Daily Fibonacci 38.2% 0.9034
Daily Fibonacci 61.8% 0.9017
Daily Pivot Point S1 0.9013
Daily Pivot Point S2 0.8963
Daily Pivot Point S3 0.8938
Daily Pivot Point R1 0.9087
Daily Pivot Point R2 0.9112
Daily Pivot Point R3 0.9162

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