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USD/CHF slips after failing to regain 0.8100
The dollar’s outlook is pressured by softer US CPI and PPI readings in June that reduced expectations for Fed hikes in July and September, while USD/CHF was last around 0.8073.
The US dollar edged lower versus the Swiss franc on Friday, after it failed to gain acceptance above 0.8100, leaving the near term bias bearish, according to an FXStreet technical outlook.
FXStreet attributed the pressure on the USD to softer US inflation data earlier in the week, with June CPI and PPI indicating that inflationary pressures moderated. Those readings have cooled hopes for an immediate Federal Reserve rate hike, with the article saying the data effectively reduces the odds of a July increase and dampens expectations for September.
The piece also pointed to ongoing geopolitical tensions between the US and Iran, noting that Iran threatened to close other energy routes. FXStreet said those developments could keep risk appetite subdued, which may limit the dollar’s downside.
On price action, FXStreet reported USD/CHF trading at about 0.8073, with a sequence of lower highs and lower lows and momentum indicators that are neutral to bearish. It identified nearby downside levels around the July 10 and 15 lows near 0.8030, then the 0.8010 area and a 0.8007 zone tied to the 38.2% Fibonacci retracement, while calling 0.8100 a key upside threshold for a move toward the 0.8135 to 0.8150 range.