USDCHF rises by 0.22% on mixed U.S. economic data and anticipation of Fed decisions

USDCHF Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.22%	18.7 Pips
Week to-date	-0.14%	-12.2 Pips
September	-0.06%	-5.3 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
Wed 07:00 PM USD Interest Rate Projections

What happened lately

In August, the U.S. economy saw a noteworthy improvement in its industrial production, which increased to 0.8% from the previous month’s decline of -0.6%, indicating a recovery and potential strengthening in the manufacturing sector. However, the retail sector showed mixed signals. According to data from the Census Bureau, the U.S. Retail Trade Control Group dropped to 0.3% from a revised 0.4% in July, and the Monthly Retail Trade excluding Automobiles also decreased to 0.1% from 0.4% in July. These figures suggest some slowing in consumer spending, particularly when factoring out the auto sector.

The economic data from the United States presents an interesting scenario for the USDCHF pair. While the rise in industrial production points to a stronger U.S. economy, the decline in retail sales figures could potentially temper investor enthusiasm. The daily rise of USDCHF by 0.22% to 0.84648 reflects a nuanced view, acknowledging the industrial production boost while showing caution due to weaker consumer spending data. Additionally, investors are likely cautious ahead of upcoming high-impact events, such as the Federal Reserve’s interest rate decision and interest rate projections. Any hawkish or dovish surprises from the Fed could further impact the USDCHF exchange rate, with potential implications for the U.S. dollar’s strength relative to the Swiss franc.

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What can we expect from USDCHF today?

USDCHF on Tuesday rose 0.22% to 0.84648. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDCHF looks bullish as the pair ended higher after Tuesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.84848 with break above could target R2 at 0.85047 or figure level area. While towards the downside, we are looking at daily low of 0.84293 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.84770 may suggest continuation after recent positive movement.

For the week to-date, take note that USDCHF is mixed as compared to the prior week.

Key levels to watch out:

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