USD/CHF: Franc steady as Swiss inflation rises, US NFP data next

September 01, 2023 12:10 PM AEST | By Invezz

USD/CHF: Franc steady as Swiss inflation rises, US NFP data next — Image source: Invezz

Swiss and US inflation data

The USD/CHF exchange rate has drifted upwards after a series of economic data from the United States. On Tuesday, data revealed that the country’s consumer confidence dropped to 106 in August after rising in the past two straight months.

Additional data revealed that the country’s economy grew by just 2.1% in Q2 after expanding by 2.0% in Q1. While this was a good number, it was lower than the first estimate at 2.4%.

Another report revealed that the US trade deficit widened to more than $90 billion in July. And, according to ADP, the private sector created just 177k jobs in August.

On Thursday, data showed that the country’s personal consumer expenditure (PCE) rose by 3.3%. This is an important number since PCE is the most important inflation gauge by the Federal Reserve.

Watch here: https://www.youtube.com/embed/hIfvjAh-_Uk?feature=oembed

The next key data to watch will be the latest US non-farm payrolls (NFP) data. Economists polled by Reuters expect the number to show that the unemployment rate remained at 3.5% as the economy added over 170k jobs.

The USD/CHF price also reacted to the latest Swiss inflation data. According to the statistics agency, the headline inflation rose to 0.2% in August, leading to a 1.6% YoY increase. This data means that the Swiss National Bank (SNB) will likely raise rates again this month.

The other important news was the blockbuster earnings by UBS, the biggest bank in Switzerland. The bank’s profit came in at over $29 billion, helped by its acquisition of Credit Suisse.

USD/CHF technical analysis

The USD/CHF price has been in a slow upward trend since the first week of August. In this period, the pair has formed an ascending channel shown in black. It has moved slightly above the 25-period and 50-period moving averages and is slightly below the 50% retracement level.

Therefore, the outlook for the USD to CHF price is bullish, with the next level to watch being at 0.8875, the highest point on August 25th. The stop-loss of this trade will be at 0.8750.

The post USD/CHF: Franc steady as Swiss inflation rises, US NFP data next appeared first on Invezz.

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