The Swiss Franc exchange rate today is still under pressure around the 0.8950 level and has experienced a small decline after experiencing an intraday increase for two days down until Tuesday morning. This shows that the Swiss Franc (CHF) currency pair is performing well compared to the US Dollar which is experiencing a less than good situation amid market uncertainty ahead of the release of major data and events. Today's forex news is summarized based on technical analysis from the FxStreet.com site. The US Dollar Index (DXY) fell to 102.40 as it pulled back from its monthly high earlier this week. This was due to less than satisfactory US economic data and mixed comments from the Federal Reserve (Fed), although market sentiment was declining. The NY Empire State Manufacturing Index on Monday in May also showed its biggest decline since April 2020, with a figure of -31.8. This, along with US inflation data released last week which showed gloomy signals, reinforced the dovish view of the Federal Reserve (Fed) and put pressure on the US Dollar and the USD/CHF price. Despite not recommending a rate hike, most Federal Reserve (Fed) policymakers remain hawkish, supporting USD/CHF prices. On Monday, some signals from the Federal Reserve (Fed) were still optimistic. Atlanta Fed President Raphael Bostic told CNBC that there is still a long way to go to achieve inflation, adding that they may have to "raise interest rates." Meanwhile, Chicago Federal Reserve Bank President Austan Goolsbee said in an interview with CNBC that much of the impact of the interest rate hike is still in the pipeline. Minneapolis Fed President Neel Kashkari also signaled that the Federal Reserve (Fed) still has a long way to go to achieve its 2.0% inflation target. The White House recently announced a meeting between President Joe Biden and Republican House Speaker Kevin McCarthy to discuss the US debt crisis. While US policymakers appear quite optimistic about extending the debt ceiling before the end of June, which has affected the USD/CHF value, recent comments from Kevin McCarthy indicate concerns about a possible deadlock in extending the US debt ceiling. This may strengthen the US Dollar on concerns that Republicans may persist with their demands. Kevin McCarthy said, “I don’t think we’re in a good place.” Although Wall Street closed positive and yields remained depressed, S&P 500 Futures registered a slight decline, indicating market indecision and waiting for key data/events for a clear direction. The US retail sales for April, expected to come in at 0.7% MoM as compared to -0.6% prior, will be the first to entertain USD/CHF traders ahead of the key US debt talks. Should the US policymakers provide a positive surprise to the markets, it is likely to witness a slide in the US Dollar that cannot be ignored. On the technical analysis front, although USD/CHF has witnessed a reversal from a one-month-old descending resistance line around 0.8985, a near-term decline is still elusive unless the price breaks a one-week-old ascending support line around 0.8920. This suggests that the USD/CHF pair is still in a downtrend and further confirmation is needed to signal a trend reversal.


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Warning!
 
This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.
 
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