Usdchf Trades With A Bearish Tone

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Usdchf Trades With A Bearish Tone

Usd/Chf Trades At 0.9050 With A Bearish Tone

It looks like the theme of greenback selling continues even in the USD/CHF pair. The USD/CHF is seen trading near the 0.9050 handle, with 0.900 as the support and 0.910 as the immediate resistance.

For the most part, the USD/CHF will likely trade between the range of 0.90 - 0.91 until the US CPI is released. Only after the US CPI release will we see some decisive action in the USD/CHF.

Ppi Reading Surprises The Market

For now, the USD/CHF is trading with a bearish tone as investors are trying to digest a higher PPI reading. It appears that the investors need confirmation that the inflation has indeed turned higher, and the CPI will provide clarity on that situation.

According to the BLS, the PPI jumped 0.5% month-over-month during April, higher than the 0.3% forecast. Overall, an increase was seen in the producer prices from March's reading of -0.1%. Similarly, the core CPI also showed a reading of +0.5% m/m during April, a lot higher than the forecasts of 0.2%.

Meanwhile, Fed Chair Powell has also shared his views on the recent PPI data. He said that the bank is now less confident about the progress of disinflation after the release of the recent inflation data.

He also added that the US GDP will likely touch 2% or even higher, given the strength of the US labor market. However, it is also important to note that higher inflation will dent consumer spending, which will lead to higher GDP growth.

Elsewhere, the producer and import prices from Switzerland showed a reading of -1.8% in April. Over all, the reading was a little better when compared with the -2.1% decline in March. This makes it the 12 consistent month of decline and also highlights the gravity of the situation.

Looking ahead, the industrial will be looking at the Industrial production for Q1 2024. This report will provide key insights intothe production volume in the manufacturing sector of Switzerland.

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