USD/CHF Pauses Ahead of Key US Inflation Data
The USD/CHF pair has leveled off near the 0.8100 mark as traders wait for US inflation data, set to be released on Thursday and Friday. The US Producer Price Index (PPI) and Consumer Price Index (CPI) will provide crucial insights into the US Federal Reserve's policy path, which in turn will impact the US Dollar.
Rising September Fed rate hike bets and inflation risks due to escalating US-Iran tensions are expected to support the Greenback. The USD/CHF pair remains above the 100-day Simple Moving Average (SMA) at 0.8004, with a dense Fibonacci support band between 61.8% retracement at 0.8028 and 38.2% retracement at 0.8077.
The Relative Strength Index (RSI) suggests neutral momentum after earlier gains, while the Moving Average Convergence Divergence (MACD) has turned slightly positive, hinting that upside pressure is moderating rather than reversing.