The recent rebound of the US dollar has led to a decline in the Swiss franc against it, similar to other major currencies. The US dollar is also expected to show further strength in the coming period, supported by recent positive economic data, most notably, and the annual Consumer Price Index (CPI) - which came in at 2.7%, the highest reading in the last four releases.
This last CPI reading holds particular significance, as the Federal Reserve (Fed) is closely watching it, especially with expectations that the impact of tariffs may start to appear from this and the next reading.
Positive inflation data and a stable labor market give the Fed the flexibility to maintain steady interest rates in the near term, which could support further USD strength. The impact of all this economic data is expected to diminish as we approach August 1, the date when tariffs are set to resume, according to US President Donald Trump.
The world is closely watching how the tariff issue will unfold and whether trade agreements will be reached before that date. All of this directly affects global markets and the US dollar. For these reasons, traders should closely monitor the news, as developments are rapidly changing and appear daily, especially statements from the US President regarding tariffs.
Technical outlook
From a technical perspective, the USD/CHF pair is trading in an uptrend on the 4-hour chart. Its recent pullback to the 0.79419 level is considered corrective, with the uptrend likely to resume and target the 0.79997 level.
However, if the price drops below the 0.79193 level and forms a lower low on the 4-hour chart, this would signal a trend reversal from bullish to bearish, invalidating the bullish scenario mentioned above.
This last CPI reading holds particular significance, as the Federal Reserve (Fed) is closely watching it, especially with expectations that the impact of tariffs may start to appear from this and the next reading.
Positive inflation data and a stable labor market give the Fed the flexibility to maintain steady interest rates in the near term, which could support further USD strength. The impact of all this economic data is expected to diminish as we approach August 1, the date when tariffs are set to resume, according to US President Donald Trump.
The world is closely watching how the tariff issue will unfold and whether trade agreements will be reached before that date. All of this directly affects global markets and the US dollar. For these reasons, traders should closely monitor the news, as developments are rapidly changing and appear daily, especially statements from the US President regarding tariffs.
Technical outlook
From a technical perspective, the USD/CHF pair is trading in an uptrend on the 4-hour chart. Its recent pullback to the 0.79419 level is considered corrective, with the uptrend likely to resume and target the 0.79997 level.
However, if the price drops below the 0.79193 level and forms a lower low on the 4-hour chart, this would signal a trend reversal from bullish to bearish, invalidating the bullish scenario mentioned above.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.