Published on Mar 21, 2023

Daily Analysis For USD/CHF 21-03-2023

USD/CHF Analysis

Economic Events and Scenario for USD/CHF

Economic Events : -

GMT	Event	Impact	Currency
00:30	(Australia) RBA Meeting Minutes	High	AUD
02:30	(New Zealand) Credit Card Spending YoY	Low	NZD
06:00	(Finland) Unemployment Rate	Low	EUR
06:25	(Switzerland) SNB 2022 Annual Report	Low	CHF
07:00	(European Union) New Car Registrations YoY	Medium	EUR
07:00	(Switzerland) Balance of Trade	Medium	CHF
07:00	(United Kingdom) Public Sector Net Borrowing Ex Banks	Low	GBP
07:00	(United Kingdom) Public Sector Net Borrowing	Low	GBP
09:30	(Slovenia) PPI YoY	Low	EUR
10:00	(Euro Area) Construction Output YoY	Low	EUR
10:00	(Euro Area) ZEW Economic Sentiment Index	Medium	EUR
10:00	(Germany) ZEW Current Conditions	Low	EUR
10:00	(Germany) ZEW Economic Sentiment Index	High	EUR
10:00	(United Kingdom) 30-Year Treasury Gilt Auction	Low	GBP
11:00	(Latvia) PPI MoM	Low	EUR
11:00	(Latvia) PPI YoY	Low	EUR
12:30	(Canada) CPI Trimmed-Mean YoY	High	CAD
12:30	(Canada) CPI Median YoY	High	CAD
12:30	(Canada) Inflation Rate MoM	Medium	CAD
12:30	(Canada) Core Inflation Rate YoY	Medium	CAD
12:30	(Canada) Inflation Rate YoY	High	CAD
12:30	(Canada) Core Inflation Rate MoM	Low	CAD
12:30	(Euro Area) ECB President Lagarde Speech	Medium	EUR
12:55	(United States) Redbook YoY	Low	USD
13:30	(Euro Area) ECB Enria Speech	Low	EUR
14:00	(United States) Existing Home Sales MoM	High	EUR
14:00	(United States) Existing Home Sales	High	USD
14:30	(Slovenia) Unemployment Rate	Low	EUR
15:00	(New Zealand) Global Dairy Trade Price Index	Low	NZD
15:30	(United States) 52-Week Bill Auction	Low	USD
15:30	(Euro Area) ECB Enria Speech	Low	EUR
17:30	(United States) 20-Year Bond Auction	Low	USD
20:30	(United States) API Crude Oil Stock Change	Medium	USD
21:00	(New Zealand) Westpac Consumer Confidence	Low	USD

Today's Scenario: - During early Tuesday morning in Europe, USD/CHF has gained bids to reach an intraday high of 0.9300, extending the gains from the previous day, which was the first in three.

This rebound in the Swiss Franc (CHF) pair could be attributed to the US Dollar's corrective bounce off a five-month low, amid hawkish Fed speculation. However, there is still some caution surrounding the latest updates in the banking industry, following a debacle in the US and Europe.

The US Dollar Index (DXY) has bounced off the previous day's lowest levels since early February, and is mildly bid around 103.40 at present, breaking a three-day downtrend. This recovery can be attributed to the late Monday rally in US Treasury bond yields, as well as hawkish Fed speculation, which is enticing buyers ahead of the Federal Open Market Committee (FOMC) Monetary Policy Meeting on Wednesday.

Buy Scenario: - USD/CHF bulls are currently facing a challenge around the 0.9300 level, as a two-week-old descending resistance line poses a barrier for further upward movement. Till we do not advise to buy USD/CHF.

Sell Scenario: - USD/CHF is currently in a consolidation phase this week, with the Swiss Franc showing stability after the recent merger of UBS and Credit Suisse. Following Credit Suisse's default amid a liquidity crunch, Swiss authorities intervened and facilitated UBS's takeover of the troubled bank.

Investor focus has now shifted towards the Federal Reserve's (Fed) policy decision scheduled for Wednesday. The market is divided on whether the Fed will announce a 25-basis point (bps) rate hike at the upcoming FOMC meeting. Till we do not advise to sell USD/CHF.

Support and Resistance Level: -