USD/CHF Price Forecast: Ticks Lower Despite Upbeat US Dollar
- USD/CHF edges lower even though the US Dollar holds ground ahead of US Trump’s inauguration ceremony.
- Traders have raised Fed dovish bets after surprisingly soft annual US CPI reading for December.
- The SNB is expected to continue reducing interest rates to avoid risks of inflation remaining lower.
The USD/CHF pair edges lower to near the round-level support of 0.9100 in Friday’s European session. The Swiss Franc pair falls marginally as the Swiss Franc (CHF) performs strongly against its major peers even though market participants expect the Swiss National Bank (SNB) to continue easing the monetary policy further.
Swiss Franc PRICE Today
The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | 0.29% | 0.36% | 0.11% | 0.10% | 0.15% | 0.00% | |
| EUR | -0.03% | 0.26% | 0.34% | 0.09% | 0.07% | 0.14% | -0.02% | |
| GBP | -0.29% | -0.26% | 0.04% | -0.18% | -0.19% | -0.13% | -0.29% | |
| JPY | -0.36% | -0.34% | -0.04% | -0.22% | -0.24% | -0.19% | -0.34% | |
| CAD | -0.11% | -0.09% | 0.18% | 0.22% | -0.02% | 0.05% | -0.11% | |
| AUD | -0.10% | -0.07% | 0.19% | 0.24% | 0.02% | 0.06% | -0.09% | |
| NZD | -0.15% | -0.14% | 0.13% | 0.19% | -0.05% | -0.06% | -0.15% | |
| CHF | -0.01% | 0.02% | 0.29% | 0.34% | 0.11% | 0.09% | 0.15% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).
Growing risks of Swiss inflation undershooting the SNB’s target have accelerated, resulting in the need for more interest rate cuts. The SNB has already reduced its key borrowing rates to 0.5%.
Meanwhile, the US Dollar (USD) gains as investors are cautious ahead of President-elect Donald Trump’s swearing-in ceremony on Monday. Investors expect Trump to announce economic policies, such as higher tariffs and lower taxes, soon after returning to the White House. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, ticks higher to near 109.15.
The Greenback remains firm even though an unexpected deceleration in the core Consumer Price Index (CPI) data for December has forced traders to raise Federal Reserve (Fed) dovish bets.
USD/CHF is on track to revisit its 15-month high, around 0.9200. The outlook of the Swiss Franc pair remains firm as the 20-week Exponential Moving Average (EMA) near 0.8900 is sloping higher.
The 14-week Relative Strength Index (RSI) oscillates in the bullish range of 60.00-80.00, suggesting a strong upside momentum.
For a fresh upside toward the round-level resistance of 0.9300 and the 16 March 2023 high of 0.9342, the asset needs to break decisively above the October 2023 high of 0.9244.
On the flip side, a downside move below the psychological support of 0.9000 would drag the asset towards the November 22 high of 0.8958, followed by the December 16 low of 0.8900.
USD/CHF weekly chart
(Click on image to enlarge)
More By This Author:
EUR/USD Trades Sideways As Trades Reassess Fed’s Monetary Policy OutlookEUR/USD Stays Firm Ahead Of US Inflation
USD/CHF Price Forecast: Needs To Break Above 0.9250 For Fresh Upside
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