The USD/CHF is on track to close in the green for the eleventh straight week as the Greenback (USD) picks up further steam against the Swiss Franc (CHF). US data beats continue to bolster the USD, and rising US Treasury yields on the back of concerns over a potential US government shutdown are adding fuel to the US Dollar fire. On the CHF side, the Swiss National Bank (SNB) recently surprised markets with an unexpected freeze on rate hikes, and the SNB’s rate hike cycle appears to be well and truly over as inflation slumps below the Swiss central bank’s 2% target and the Swiss domestic economy continues to show signs of weakness. US Durable Goods Orders surprised to the upside on Wednesday, with the headline figure for August printing 0.2%, a healthy rebound from the previous 5.6% decline and landing above the market forecast -0.5%.
Next up on the economic calendar for the USD will be Thursday’s Gross Domestic Product (GDP) figures, forecast to hold steady at 2.1% for the second quarter. Friday sees Swiss Retail Sales for the annualized period into August, which last printed at -2.2%, while the US Core Personal Consumption Expenditure (PCE) Price Index is expected to hold in-line with the previous reading of 0.2%. The USD/CHF has climbed nearly 8% from July’s lows near 0.8555, and prices have vaulted cleanly over the 200-day Simple Moving Average (SMA) near 0.9050. The 0.9200 region is a neighborhood that plagued the USD/CHF with heavy consolidation in 2021. Despite the recent rise on the charts, the USD/CHF still remains down almost 2.5% on the year, and buyers will need to overcome 2023’s cap before moving further.
