Usdchf Climbs On Strong Us Dollar

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Usdchf Climbs On Strong Us Dollar

Usd/Chf Climbs Above 0.8950 On Strong Us Dollar

USD/CHF is trading near the 0.9855 handle with bullish momentum and has already ended its 2-day losing streak on Monday. The upside seen in the USD/CHF is mainly due to the firmer US Dollar at the start of a new trading week.

Later today, traders will be closely watching the Producer & Import prices (Switzerland) for the month of June. After that, the data from the US side will be released including the Fed's Daily speech and NY Empire State Manufacturing Index (July).

Above Forecast Ppi Sends The Usd Higher

Last week, the producer prices (USA) were released which showed a little higher reading than the forecast due to the increased cost of services. This resulted in the appreciation of the USD against the CHF.

The data showed that PPI increased to 2.6% in June against May's reading of 2.4%. Additionally, the PPI reading for June was also above the 2.4% forecast set by the market experts.

Another important data release from last week was the US consumer sentiment from UoM which showed a change from 68.2 to 66.0 during June. When compared with the earlier readings, this was the lowest value in the 7 months.

However, an increase in wholesale inflation is not likely to have an effect on the Fed's rate cut plans for September. Even today, the chances of an interest rate cut in September are around 90% which is a lot higher than what it was a few months ago.

Meanwhile, Donald Trump was injured during a rally which is likely to boost the safe haven demand. As a result, the CHF will likely turn higher against the USD and we might see the USD/CHF to start trend lower in the next few days.

However, if the market players decide to ignore the political uncertainty, then the current uptrend in the USD/CHF will likely continue for the short term until we get fresh impetus in the form of economic releases.

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