USDCHF on Friday rose 0.31% to 0.84974. Week ending 2024-08-30 rose 0.29%. End of August dropped -3.23%. What happened.

USDCHF Analysis

Performance
Period	Pct	Chg	Momentum
Friday	0.31%	26 Pips
Week 2024-08-30	0.29%	24.2 Pips
August	-3.23%	-284 Pips

Upcoming key events for the new week (London Time)

Mon 06:00 AM Labor Day
Tue 07:30 AM Swiss CPI Inflation Rate (12-mth)
Tue 08:00 AM GDP (seasonally adjusted) (3-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims
Fri 01:30 PM Nonfarm Payroll Employment

What happened over the week

In the United States, several economic indicators showed mixed results for August. The Michigan Index of Consumer Sentiment slightly increased from 67.8 points in July to 67.9 points, suggesting marginally improved consumer outlook. However, the 5-year Consumer Inflation Expectation remained unchanged at 3%. The PCE Price Index for July rose to 0.2%, from 0.1% the previous month, while the core PCE (excluding food and energy) maintained the same 0.2%. Personal Income increased to 0.3% from 0.2%, while Consumer Spending (PCE) saw a rise from 0.3% in June to 0.5% in July. GDP growth rate for Q2, in its flash estimate, was stronger at 3%, up from 2.8% in Q1, and the GDP Price Index rose from 2.3% to 2.5%. Though most annual rates (like the PCE Price Index at 2.5%) held steady, initial unemployment claims dropped slightly to 231,000.

In Switzerland, the ZEW Financial Market Survey sharply declined to -3.4 points in August from 9.4 points in July. These economic reports indicate a negative turn for financial market confidence in Switzerland.

The USDCHF currency pair experienced a rise of 0.31% on Friday, to 0.84974. This pair’s behavior for the week ending on August 30 saw an increase of 0.29%, although it registered a 3.23% drop over the entire month of August. The recent strengthening of the US dollar relative to the Swiss franc can be attributed to the stronger-than-expected US GDP growth and increased consumer spending, which generally support the currency by indicating a robust economic environment. Conversely, weakening economic confidence in Switzerland puts downward pressure on the Swiss franc. Investors will likely continue to monitor upcoming high-impact events, such as Switzerland’s CPI Inflation Rate and GDP data, as well as crucial US data like Nonfarm Payroll Employment. The market’s response to these incoming economic indicators will be pivotal in further determining the USDCHF trajectory.

From X (Twitter)

Production in Switzerland's secondary sector rose by 6.4% in 2nd quarter 2024 #statistics https://t.co/kJH0UEAx7J pic.twitter.com/T6AzfCZefv

— Swiss Statistics (@swissstatistics) August 16, 2024

What can we expect from USDCHF for the new week and what happened on Friday?

USDCHF on Friday rose 0.31% to 0.85. Price is below 9-Day EMA while Stochastic is rising. For the week ending 2024-08-30, the pair rose 0.29% or 24.2 pips higher.

Looking ahead, USDCHF looks bullish as the pair ended higher after Friday trading session.

For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 0.85 or at least consolidates above Weekly Pivot level of 0.85. On the downside, we are looking at week low 0.84 or 0.84 (WS1) as immediate support level. USDCHF need to break on either side to indicate a short-term bias. A break above 0.85 would suggest bullish bias after recent positive movement.

For the month of August, USDCHF is down by -3.23% or -284 pips lower.

Weekly key levels to watch out:

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