USD/CHF Rebounds as Weak Swiss Data Lifts Dollar
USD/CHF continues its rebound, edging closer to the 0.8100 level following the release of Swiss CPI and PMI data.
FUNDAMENTAL OVERVIEW:
The Swiss Franc emerged as the weakest performer among G8 currencies on Monday, weighed down by disappointing manufacturing data that overshadowed a slightly stronger-than-expected inflation reading. Meanwhile, the US Dollar regained some ground after Friday’s sharp decline.
Swiss CPI data showed annual inflation ticking up to 0.2% in July from 0.1% previously, with the monthly figure holding steady—better than the expected 0.2% decline. While this eases pressure on the Swiss National Bank (SNB) to push rates further below zero, its impact was largely muted as the SVME PMI revealed a surprising drop in manufacturing activity. Furthermore, the imposition of steep US tariffs on Swiss exports has deepened concerns about Switzerland’s economic outlook.
On the other hand, the US Dollar is seeing a modest rebound following Friday’s sell-off, which was triggered by weaker-than-expected Nonfarm Payrolls (NFP) data. July saw a net job gain of 73,000—well below the forecast of 110,000—while revisions to the previous two months erased 258,000 jobs. The Unemployment Rate also ticked up to 4.2% from 4.1%, strengthening market expectations for a Federal Reserve rate cut in September.
USD/CHF TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CHF is trading within a down channel.
USD/CHF is moving above 50 and 100 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 0.8155
Immediate support level: 0.8040
HOW TO TRADE USD/CHF
After a sustained downward move, USD/CHF found support and reversed to the upside. The pair has since broken through a key resistance zone and is currently retesting this area as support. Signs of further recovery are emerging, and if the price holds above this level, continued upside momentum is likely.