USD/CHF pares the biggest daily rise in seven weeks. USD/CHF portrays the general US dollar pullback while consolidating the previous day’s heavy gains ahead of Friday’s European session. That said, the quote drops 0.16% intraday to 0.9236 by the press time, following that heaviest rally last seen in early January. While portraying the mood, S&P 500 Futures drop 0.60% and the US Treasury yields remain pressured around 1.95%, which in turn underpin the US Dollar Index (DXY) pullback from a 20-month high.
In addition to the geopolitical updates, the fears that geopolitics will push back Fed from faster rate-hikes may also have weighed on the DXY. However, the latest data from the US and Fedspeak have been upbeat, suggesting a faster trajectory towards monetary policy normalization. As a result, the Fed’s preferred inflation gauge, namely Core PCE Price Index, as well as Durable Goods Orders, for January will also be important for USD/CHF traders to watch for clear direction.
Unless closing beyond a three-month-old descending trend line, around 0.9285 by the press time, USD/CHF sellers remain directed towards the 200-DMA level of 0.9182.