The US dollar against the Swiss franc continues its upward trend, reaching 0.9154 yesterday and currently hovering around 0.9100 levels.
Recent Swiss economic data shows that the Swiss economy is indeed facing weakness, as:
• The Purchasing Managers’ Index (PMI) for January decreased, showing a contraction of 47.5 points, which is lower than expectations (49.0) and the previous reading (48.4), marking the lowest level since July of last year.
• The unemployment rate increased to 3.0%, exceeding expectations (2.9%) and the previous reading (2.8%).
It is noteworthy that an important factor has provided positive momentum for the USD/CHF pair, which is the strength and resilience of the US economy. Most economic data have exceeded analysts’ expectations, such as the annual Consumer Price Index (CPI), which showed a growth of 3.0% yesterday, higher than expectations and the previous reading (2.9%), reaching its highest level since June 2024. The core Consumer Price Index, which excludes food and energy, also showed a growth of 3.3% on an annual basis, higher than expectations (3.1%) and the previous reading (3.2%), indicating that inflation remains entrenched and stubborn, which supports the expectation that interest rates will remain high for a longer period.
Analysts are closely watching the release of the Swiss Consumer Price Index (CPI) today, with expectations for growth of 0.4%, which is lower than the previous reading (0.6%). Therefore, caution is advised. Any reading exceeding expectations for this indicator suggests a high probability that it could negatively affect the USD/CHF pair.
As for the technical side, if the pivot point of 0.9131 for USD/CHF is broken, there is a possibility that it will target support levels at 0.9107, 0.9079, and 0.9055. If the pivot point is exceeded, the pair may target resistance levels at 0.9159, 0.9183, and 0.9211. The Relative Strength Index (RSI), currently at 56 points, indicates positive momentum for the USD/CHF pair.
As for the MACD indicator (in blue), it is crossing above the signal line (in orange), indicating bullish momentum for the USD/CHF pair.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
