The USD/CHF pair is currently trading below the key resistance level of 0.9000 as investors focus on the upcoming US Consumer Price Index (CPI) data for June. The core CPI is expected to show a steady increase, which could impact expectations for future rate cuts by the Swiss National Bank (SNB).
US inflation data is projected to show a rise in core CPI by 0.2% on a monthly basis and 3.4% annually. This could influence the direction of interest rates in the coming months. On the other hand, Swiss inflation has been easing, leading to expectations of more rate cuts by the SNB.
The Swiss Franc remains uncertain in the near term, with inflationary pressures cooling. The USD/CHF pair is currently trading in a Falling Channel chart pattern, with market participants viewing pullbacks as selling opportunities. The asset finds support near the 200-day Exponential Moving Average (EMA) around 0.8950.
The 14-day Relative Strength Index (RSI) indicates indecisiveness among investors, as the asset continues to trade within a range. A decisive move above 0.9036 could drive the pair higher towards 0.9086 and 0.9140. Conversely, a break below 0.8900 could lead to a decline towards 0.8840 and 0.8800.
Overall, the Swiss Franc is considered a safe-haven asset, with its value influenced by factors such as market sentiment, economic health, and SNB policies. The currency’s fortunes are closely tied to the Eurozone economy, with any changes in economic data or central bank decisions likely to impact its valuation.