Created
: 2025.01.15
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CHF Price Forecast: Trades cautiously near 0.9100 ahead of US inflation data
World FX news
Breaking news
USD/CHF Price Forecast: Trades cautiously near 0.9100 ahead of US inflation data
New
2025.01.15 19:42
2025.01.15 19:42
2025.01.15 19:42
- USD/CHF appears to be cautious around 0.9100 with investors focusing on the US inflation data for December.
- The Fed is expected to cut interest rates only once this year.
- Investors expect further policy-easing by the SNB due to growing risks of inflation remaining lower.
The USD/CHF pair trades with caution slightly above the key support of 0.9100 in Wednesday's European session. The Swiss Franc pair ticks lower as the US Dollar (USD) falls slightly ahead of the United States (US) Consumer Price Index (CPI) data for December, which will be published at 13:30 GMT.
The US Dollar Index (DXY), which gauges the Greenback's value against six major currencies, drops to near the key support of 109.00.
Investors will pay close attention to the US inflation data, which will indicate how long the Federal Reserve (Fed) will keep interest rates at their current levels this year. According to the CME FedWatch tool, the Fed is expected to cut interest rates only once this year, and that will not happen before June's policy meeting.
Economists expect the annual headline inflation to have accelerated to 2.9% from 2.7% in November, with the core reading growing steadily by 3.3%.
Meanwhile, the Swiss Franc (CHF) remains under pressure as investors expect the Swiss National Bank (SNB) to continue reducing interest rates to avoid risks of inflation undershooting their 0-2% range.
USD/CHF is on track to revisit its 15-month high, around 0.9200. The outlook of the Swiss Franc pair remains firm as the 20-week Exponential Moving Average (EMA) near 0.8879 is sloping higher.
The 14-week Relative Strength Index (RSI) oscillates in the bullish range of 60.00-80.00, suggesting a strong upside momentum.
For a fresh upside toward the round-level resistance of 0.9300 and the 16 March 2023 high of 0.9342, the asset needs to break decisively above the October 2023 high of 0.9244.
On the flip side, a downside move below the psychological support of 0.9000 would drag the asset towards the November 22 high of 0.8958, followed by the December 16 low of 0.8900.
USD/CHF weekly chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.01.15
Related articles
USD/JPY tumbles over 1% as US core inflation cools
28 minutes agoEUR grinds higher despite dovish ECB comments - Scotiabank
2025.01.15 23:01EUR/GBP ticks lower as rally in UK gilt yields pauses after soft inflation data
2025.01.15 22:23GBP: Better than forecast CPI boost BoE easing hopes and lift Gilts - Scotiabank
2025.01.15 22:09CAD lags commodity peers - Scotiabank
2025.01.15 21:58USD/JPY: BoJ Governor Ueda comments boost BoJ tightening bets - Scotiabank
2025.01.15 21:55
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
USD/JPY tumbles over 1% as US core inflation cools
The USD/JPY dropped over 1% in early trading during the North American session as inflation data in the United States (US) resumed its downward trajectory in core figures.
New
2025.01.16 00:19EUR grinds higher despite dovish ECB comments - Scotiabank
The Euro's (EUR) grind higher has extended above 1.03, barely, in quiet trade, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.01.15 23:01EUR/GBP ticks lower as rally in UK gilt yields pauses after soft inflation data
The EUR/GBP pair edges lower to near 0.8440 in Wednesday's North American session.
New
2025.01.15 22:23GBP: Better than forecast CPI boost BoE easing hopes and lift Gilts - Scotiabank
UK markets breathed a sigh of relief after this morning's UK inflation data, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.01.15 22:09CAD lags commodity peers - Scotiabank
The Canadian Dollar (CAD) is lagging its commodity peers and trading little changed on the session. Tariff risks remain a constraint on the CAD's performance, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.01.15 21:58USD/JPY: BoJ Governor Ueda comments boost BoJ tightening bets - Scotiabank
The Japanese Yen (JPY) is leading gains amongst the majors, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.01.15 21:55US Dollar edges lower - Scotiabank
The US Dollar (USD) is modestly lower for a second day. US PPI came in below consensus expectations yesterday, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.01.15 21:51US Dollar retreats for third day in a row ahead of US CPI inflation
The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, extends its correction from a two-year high above 110.00 reached on Monday and trades near 109.10 at the time of writing on Wednesday.
New
2025.01.15 20:53USD/CNH: Upward momentum is beginning to fade - UOB Group
Momentum indicators are turning flat, suggesting further range trading, probably in a range of 7.3380/7.3580. Upward momentum is beginning to fade; a breach of 7.3250 would suggest that 7.3700 is not coming into view, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.01.15 19:57USD/JPY: Current price movements are likely part of a consolidation phase - UOB Group
Further range trading seems likely, probably between 157.30 and 158.30. In the longer run, current price movements are likely part of a consolidation phase, expected to be between 156.50 and 158.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.01.15 19:43Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
