The US dollar gained ground against the Swiss franc yesterday following the release of unexpectedly positive weekly unemployment claims data. The Swiss PPI (producer and import price index) data missed estimates. This enabled the greenback to gain ground against the franc. Overall, the USD/CHF pair rallied from a low of 0.8750 to a high of 0.8849 in the past 24 hours.
According to the Federal Statistical Office, the Swiss producer and import price index inched up 0.10% m-o-m in February to 106.80 points, following a decline of 0.50% in the previous month but missing forecasts of 0.20% growth.
Specifically, the producer price index increased by 0.10% m-o-m in February to 106.50. Likewise, the import price index grew by 0.20% m-o-m to 107.60.
The petroleum and natural gas index rose by 15.50% m-o-m in February. However, chemical products declined by 1.70% in the same period.
On a y-o-y basis, the Swiss producer and import price index fell by 2% in February 2024.
According to the US Department of Labor, the country’s unemployment claims declined slightly to 209,000 in the week ending March 9 from 210,000 (downwardly revised from 217,000) in the previous week and bettered forecasts of 218,000.
The four-week moving average was 208,000, a decline from 208,500 (downwardly amended from 212,250) in the earlier week.
According to the data published by the US Census Bureau, the country’s retail sales inched up 0.60% m-o-m in February following a 1.10% decline in the previous month but missed forecasts of 0.80% growth.
The increase was mainly driven by a 2.20% rise in home improvement stores. Likewise, car sales increased 1.80% m-o-m in February. Electronics and appliances climbed 1.50% while restaurants posted an increase of 0.40%. However, furniture sales fell by 1.10% m-o-m in February. On a y-o-y basis, US retail and food services increased by 1.50% in February 2024.
According to the data published by the US Bureau of Labor Statistics, the country’s producer price index inched up 0.60% m-o-m in February following a 0.30% increase in the previous month and surpassed forecasts of a 0.30% rise.
On a y-o-y basis, the US producer price index increased 1.60% in February, reflecting the largest increase after rising 1.80% y-o-y in September 2023.
Excluding foods, energy, and trade services, the producer price index grew by 0.40% m-o-m in February, following an increase of 0.60% in January. On a y-o-y basis, excluding foods, energy, and trade services, the US producer price index rose by 2.80% in February 2024.
The slightly better-than-anticipated US economic data is expected to keep the USD/CHF pair range-bound in the near term.
The historical price chart indicates that the USD/CHF pair is ascending after testing the support at 0.8750. The next resistance is anticipated to be only near 0.9030. Additionally, the currency pair is trading above its 50-day moving average, while the MACD indicator is showing a positive reading. Therefore, we anticipate the USD/CHF pair to remain in an uptrend in the near term.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
