USD/CHF Trades in A Tight Range, As Markets Remain Anxious
USD/CHF has been bullish since July but in the last several weeks it has been displaying uncertainty as geopolitics keep tensions high. This pair dipped below 0.90 late last week, but it came to a halt at 0.8952 and began to recover. However, the price action remains slow and this pair remains capped at the top side around 0.9050s since there is a lot of uncertainty, and neither buyers nor sellers want to take charge just now, so the price is hovering around the 0.90 level.
Buyers brought USD/CHF up to 09250 by early October and moving averages were acting as support on the H4 timeframe, then we witnessed another reversal, this time lower, when the war in Gaza began. The CHF has benefited from the safe-haven status since early October, which has been the reason for the pair’s slide below 0.89 late last month, however, the decline did not continue with safe havens pulling back lower as the war in the Middle East did not expand further.
USD/CHF has remained calm during most of this month so far, with small gains, with the pair’s trend driven by risk sentiment in financial markets and the US Dollar. This week the main event is the US consumer inflation report, with markets expecting the US Consumer Price Index (CPI) to have gone up 0.1% MoM in October, while the Core measure to increase by 0.3%. Furthermore, the conclusion of the inflation number may impact expectations for the next Fed meeting, which markets are banking on an increase as of now.
So, traders are focused on this report, which will move the markets this week, unless we have further escalation or de-escalation of the Gaza conflict, which might send this pair lower or higher respectively. So, we are keeping an eye on the conflict in the Middle East, as well as on the US CPI inflation report which will be released later today.
USD/CHF Live Chart
[[USDCHF-graph]]
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