USD/CHF Prediction Ahead of US Inflation Data & FOMC Minutes

  • The USD-CHF price remained upside as markets await the coming American inflation data.
  • The Fed will announce its minutes this week on Wednesday.
  • The minutes will clarify what the latest Fed meeting had.

The USD-CHF price remained elevated as the United States Index continued to surge. The pair climbed to the parity zone as market participants waited for the latest US CPI (Consumer Price Index) data and the FOMC minutes. It gained over 6% from August lows.

US Inflation Data and FOMC Minutes

The USD-CHF price maintained uptrends as investors waited for the United States inflation data and the coming FOMC minutes. Meantime, the minutes will clarify the deliberations that occurred during this week’s conference.

That meeting saw the bank delivering its 3rd 75 basis point rate increase. That translated to a 300bp hike in 2022. Moreover, economists expect the bank to keep increasing interest rates in the upcoming months. They anticipate another 75bp hike in November before closing the year with December’s 50bp.

Most Federal officials have emphasized that the central bank can keep surging rates during the upcoming months. For instance, Charles Evans, Raphael Bostic, and Lael Brainard.

Also, market players can expect a USDCHF response on Thursday as the US publishes the latest inflation data. Reuters interviewed economists, and most expected inflation to have stayed beyond the Federal target of 2%.

The economists told Reuters that the headline CPI (Consumer Price Index) could have dipped from August’s 8.3% to September’s 8.1%. Meanwhile, analysts trust that inflation increased to 0.2% from 0.1% month-to-month.

Barring the volatile energy and food prices, economists expect the US inflation soared to 6.5% from 6.3%. Still, inflation might be higher than predicted. For instance, the latest forex news indicated that the PPI (producer price index) declined to 8.5% from 8.7%.

USD/CHF Prediction

The 24hr chart indicates the USD-CHF maintained massive bullishness within the last few months. That saw it moving beyond the crucial resistance at 0.9885 – the highest mark on 6 September. The pair stayed past the 25 and 50 moving averages, whereas the MACD moved past the neutral zone. Other oscillators continued to surge.

Thus, USD/CHF can keep surging as market players respond to the somewhat hawkish FOMC minutes and steady United States Inflation. That will confirm 1.0062 as the crucial resistance – the highest mark on 12 May.

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