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The USD/CHF pair picks up bids to refresh intraday high, adds to the second consecutive weekly gain. Cautious optimism drove US dollar downwards ahead of the latest rebound amid pre-data as well as Jackson Hole event anxiety.
A 10-week-old descending trend line and the 100-DMA, respectively near 0.9650 and 0.9665, restrict immediate USD/CHF upside.
The USD/CHF grinds higher around the monthly top, picking up bids to refresh the intraday high near 0.9635-40 during Friday’s Asian session. In doing so, the Swiss Franc pair portrays the market’s sluggish performance as traders await this week’s key data and events for fresh impulse. The risk-on mood joined mildly positive US data and Fed speakers to weigh on the quote the previous day.
Recently, the US has suspended 26 Chinese carrier flights in response to China’s action which in turn tested the previous risk-on mood and the USD/CHF bears. Further, a letter got viral quoting US President Joe Biden as saying, “The US struck Iran-backed forces in Syria in order to safeguard American civilians both at home and abroad.”
Previously, China’s near one trillion stimulus and mildly firmer US data, as well as Fedspeak, favored the USD/CHF sellers. Also, a holistic approach by the domestic institutions to safeguard the world’s second-largest economy renewed market optimism earlier.
Having witnessed an upbeat day, USD/CHF traders may mark the inactive session ahead of Fed Chair Powell’s speech at the Jackson Hole. Before that, the US Core Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred inflation gauge, may entertain the markets. Forecasts suggest that the YoY print is to ease to 4.7% from 4.8% while the monthly figures may drop to 0.3% while 0.6% prior.
