USD/CHF Struggles to Extend Rebound Despite Soft Swiss Inflation
USD/CHF Analysis
The Swiss National Bank is at the forefront of monetary easing, as it pivoted back and has lowered rates at two consecutive meetings. Policymakers have pointed to more moves ahead [1] and today's CPI strengthens their case, as inflation eased further to 1.1%.
This could help USD/CHF extend its recent rebound and try to retake the EMA200 (at around 0.8640). This would shift bias to the upside, but the road ahead contains significant roadblock with a falling daily Ichimoku Cloud coming first.
The SNB's early lead provided an initial boost to USD/CHF, but the pair dropped over the past four months as markets expect aggressive rate cuts by the Fed, starting in September. Furthermore, the pair fails to capitalize on today's favorable Swiss CPI print, as the strong Q2 GDP at 0.7% q/q moderates the urgency for further easing. As a result, the risk of lower lows towards 0.8333-0.8299 persists, but prolonged weakness does not look easy given the current policy differential.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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