Greenback Flexes Muscles Against Swissie
London: 18 January 2024 (TraderMade): The US dollar continues its reign against the Swiss franc, holding firm near its one-month peak. This strength stems from a confluence of factors.
The US Dollar is flexing its muscles against the Swiss franc, fueled by hefty US data and doubts about an early rate cut.
The USDCHF pair rose by 0.38% to 0.86769 at about 01:12 PM GMT.
Robust US Data
Strong holiday shopping figures and a positive economic outlook from the Fed's Beige Book cast doubt on an aggressive March rate cut, bolstering the dollar's appeal.
SNB Shift?
Swiss National Bank Chair Thomas Jordan's subtle rumblings about rethinking their policy due to the "excessive" franc appreciation sent the currency wobbling.
Technical Momentum
USDCHF is trending upwards - after bouncing off 0.8630 support and eyeing the 0.8675 resistance level for a potential breakout.
Eyes on the Road
Today's key data releases in the US, including jobless claims and housing numbers, could further influence the dollar's trajectory. Additionally, Atlanta Fed President Raphael Bostic's speech might offer vital insights into the central bank's monetary policy stance.
Looking Ahead
- Breakout Zone: If USD/CHF surpasses 0.8675, it could climb towards 0.8720 and eventually the 50% Fibonacci retracement level at 0.8780.
- Safe Haven Haven: The Swissie may remain under pressure if Jordan's comments spark concerns about potential policy changes.
- Volatile Forecast: Global economic data and geopolitical developments, along with central bank pronouncements, will continue to play a significant role in the USD/CHF dance.
Summary
Jordan's comments hint at a potential policy shift in Switzerland. Yet, the overall picture points towards further dollar dominance. However, both currencies remain susceptible to the winds of external factors, leaving the future path somewhat uncertain.
