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USD/CHF steadies as investors await US CPI and Fed testimony
The dollar consolidated after a 0.7% rally on Monday, as traders re-priced near term rate hike odds following Fed Governor Christopher Waller's comments.
The US dollar was little changed versus the Swiss franc on Tuesday, consolidating gains after a 0.7% jump on Monday, FXStreet reported. The move was supported by geopolitical tensions and hawkish remarks from Federal Reserve Governor Christopher Waller, which prompted investors to bring forward rate hike expectations.
Waller said the Fed would need to tighten in the near term if inflation stays above its 2% target, boosting USD strength across major pairs. Tuesday's focus is June US CPI data, which is expected to come in above target, and may shape market expectations ahead of Fed Chairman Kevin Warsh's testimony before Congress later in the day.
In technical terms, USD/CHF broke above its year to date high near 0.8130, signaling that a recent corrective phase has likely ended. FXStreet highlighted 0.8150 as immediate resistance, with a broader target area around 0.8170, while support is seen near 0.8070 to 0.8080 and further down toward the July 2 low near 0.8010.