USD/CHF Extends Gains on Softer Swiss Inflation and US Dollar Recovery
The USD/CHF currency pair has extended its gains, reaching around 0.8109 as of Monday's trading session. This increase is due to softer Swiss inflation data and a modest recovery in the US Dollar.
The pair retests the 21-day Simple Moving Average (SMA) near 0.8110 after slipping below it last week. It remains above the 50-day and 100-day SMAs, maintaining a mildly constructive outlook.
Strategists at Brown Brothers Harriman note that Swiss July CPI stayed muted, with inflation data underscoring the lack of price pressures in the economy. They conclude that the SNB has plenty of room to keep rates at 0.00% for some time, which is an ongoing drag for CHF.
On the US side, stronger-than-expected US ISM Manufacturing Purchasing Managers Index (PMI) data lends support to the Greenback. The USD/CHF's broader outlook remains mildly constructive as long as it holds above a layered demand zone.