USD/CHF Keeps Uptrend After Swiss Inflation CPI and Retail Sales

The rate of USD to CHF has turned volatile this week after being steady during April. USD/CHF broke the resistance and pushed above 0.92.

Skerdian Meta•Thursday, May 2, 2024•1 min read

The rate of USD to CHF has turned volatile this week after being steady for most of April. USD/CHF broke the resistance and pushed above 0.92 earlier this week, and despite the retreat below this level yesterday following the FOMC meeting, the previous resistance zone at 0.9150s turned into support.

USD/CHF Chart H4 – MAs Continue to Support the Bullish Trend

Last week the SNB confirmed that they have finished the job with inflation as SNB chairman Thomas Jordan pointed out. The lows were still getting higher for USD/CHF which was a bullish signal, and Jordan’s comments last week added further weakness to the CHF, sending this pair higher, above 0,92.

Last night the FED last night refused rate hikes, which was a relieve for the markets, hence the dive in this pair. But FED Chairman Jerome Powell also didn’t commit to rate cuts, so we’re back where we were regarding the FED, higher rates for longer. Today the Swiss CPI inflation and retail sales for April didn’t change much for this pair.

Swiss Inflation CPI for April

April CPI +1.4% vs +1.1% y/y expected
Prior +1.0%
Core CPI +1.2% y/y
Prior +1.0%

After having talked about successfully beating inflation, this is a minor setback for the SNB. Headline annual inflation was a beat on estimates, coming in at 1.4% with core annual inflation also ticking higher to 1.2%. Still, the numbers are keeping well below the crucial 2% mark for now. And that’s the important thing in vindicating the SNB’s policy pivot.

Swiss Retail Sales for April

Retail Sales Y/Y -0.1% vs. 0.2% expected and 0.2% prior (revised from -0.2%).
Retail Sales M/M -0.4% vs. 0.1% prior (revised from -0.1%).

USD/CHF Live Chart

USD/CHF

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.