The USD/CHF pair reversed a two-day losing streak during the early European session on Friday. It is currently trading near 0.8927, reflecting a 0.15% increase on the day. The escalating geopolitical tensions between Israel and Hamas have contributed to the strengthening of the Swiss Franc (CHF), which is often considered a safe-haven currency in times of uncertainty.
Additionally, Switzerland's Trade Balance for September exceeded expectations, with a surplus of 6,316 million Swiss Francs compared to the previous month's 3,814 million and the expected 3,770 million. This positive trade data indicates strong economic performance.
Meanwhile, Federal Reserve Chair Jerome Powell's recent comments indicated a more dovish stance on monetary policy in the United States. Powell expressed a desire to pause rate hikes and monitor economic data over the coming months. This approach has put downward pressure on the US Dollar (USD), acting as a headwind for the USD/CHF pair.
On the economic front, the US weekly job report showed that the economy remains robust, with Initial Jobless Claims for the week ending October 14 dropping to 198,000, the lowest level since January 2023. However, there was a 2.0% month-on-month decline in existing home sales in September, marking the lowest level since 2010, possibly due to higher mortgage costs affecting housing market confidence.
In the absence of significant economic data releases from both the US and Switzerland, market participants are closely monitoring speeches from Federal Reserve officials like Logan, Mester, and Harker for further insights into monetary policy and its potential impact on currency markets.
level to watch
Resistance 8945, 8985
support 8895, 8824
Additionally, Switzerland's Trade Balance for September exceeded expectations, with a surplus of 6,316 million Swiss Francs compared to the previous month's 3,814 million and the expected 3,770 million. This positive trade data indicates strong economic performance.
Meanwhile, Federal Reserve Chair Jerome Powell's recent comments indicated a more dovish stance on monetary policy in the United States. Powell expressed a desire to pause rate hikes and monitor economic data over the coming months. This approach has put downward pressure on the US Dollar (USD), acting as a headwind for the USD/CHF pair.
On the economic front, the US weekly job report showed that the economy remains robust, with Initial Jobless Claims for the week ending October 14 dropping to 198,000, the lowest level since January 2023. However, there was a 2.0% month-on-month decline in existing home sales in September, marking the lowest level since 2010, possibly due to higher mortgage costs affecting housing market confidence.
In the absence of significant economic data releases from both the US and Switzerland, market participants are closely monitoring speeches from Federal Reserve officials like Logan, Mester, and Harker for further insights into monetary policy and its potential impact on currency markets.
level to watch
Resistance 8945, 8985
support 8895, 8824
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