The USD/CHF pair is hovering near a six-month high of 0.9150, showing strength ahead of important US data. The Swiss National Bank (SNB) is expected to continue cutting rates in June, while the Federal Reserve (Fed) believes its current interest rate policy is appropriate.
The Fed is likely to keep interest rates steady for a longer period due to a strong US labor market and higher inflation caused by robust consumer spending. On the other hand, the SNB is expected to reduce interest rates further in June as Swiss inflation remains below the 2% target.
Investors are awaiting key US economic data, including Q1 Gross Domestic Product (GDP) and the core Personal Consumption Expenditure Price Index (PCE) for March. These figures will impact expectations for Fed rate cuts, currently anticipated in September.
The USD/CHF pair is trading near a resistance level of 0.9110, with potential for an upward move towards 0.9200 and beyond. Technical indicators, such as the 20-day Exponential Moving Average (EMA) and the Relative Strength Index (RSI), suggest a bullish momentum.
In the event of a downside move, breaking below the psychological support of 0.9000 could lead to further declines towards lower levels. Overall, the USD/CHF pair is poised for further upside potential in the near term.