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USD/CHF continues to rise, approaching the highest daily close in a month at around 0.8853.
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US economic data showed mixed results.
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Market participants will keep an eye on Fed Chairman Jerome Powell’s Speech for fresh impetus.
The USD/CHF pair extended its gains to the highest daily close in over a month above the 0.8850 mark during Asian trading hours on Friday. The pair is currently trading near 0.8853, up 0.09% on the day. Meanwhile, the US Dollar Index (DXY), a measure of the USD’s value against six other major currencies, rose to the 104.00 mark, supported by higher US Treasury yields. That said, the 10-year US Treasury yield rose to 4.24%, while the 2-year yield remained above 5%.
On Thursday, US durable goods orders MoM fell -5.2% in July, above expectations of -4% but lower than the previous month’s 4.4% gain. This is the biggest decline since April 2020. Meanwhile, the Chicago Fed National Activity Index rose to 0.12 in July from -0.33 previously, and the Kansas Fed Manufacturing Activity Index rose to 12.0 in August from -20.0 the previous month.
Philadelphia Federal Reserve (Fed) President Patrick Harker said at the Jackson Hole Symposium that the central bank has probably done enough with restrictive monetary policy. He also said he believes the Fed will keep interest rates steady this year, but will depend on data next year. However, Boston Fed President Susan Collins said further rate hikes were possible and it was premature to send a strong signal about when to cut rates.
On the other hand, the Swiss Federal Customs Administration reported earlier this week that Switzerland’s trade balance narrowed to 3,129M against the market consensus of 4,300M. Meanwhile, exports fell by 16.7% in July. At the same time, imports fell by 12.5%. Still, growing concerns about China’s deteriorating economic conditions will dampen market optimism. This could benefit the traditional safe haven Swiss franc and act as a headwind for the USD/CHF pair.
In the absence of economic data released from Switzerland, the USD/CHF pair remains at the mercy of USD price dynamics. Market participants will be keeping an eye on Fed Chairman Jerome Powell’s speech on Friday. Events will be important to determine a clear movement for the pair.
USD/CHF
