- The Swiss Franco earns more than 6% in eight days as investors flee from the USD for political instability and commercial risks.
- Trump attacks Powell again, asks for immediate rates cuts in the midst of falling oil and food prices.
- The USD/CHF runs the risk of a deeper fall around 0.79 if the support of 0.8038 fails; The resistance is 0.8163 and 0.8267.
The USD/CHF extended its losses for the third consecutive day as the market mood became negative due to the attacks of the US president, Donald Trump, to the president of the Fed, Jerome Powell, which investors saw as a threat to the independence of the central bank of the USA 0.06.
The pair falls for the third consecutive day to 0.8080 while safe refuge flows favor the Swiss frank
The tariffs were the main issue in the financial market until Friday, when Powell became slightly more aggressive and even said that tariffs could be prone to inflation. Consequently, Trump questioned why the Fed has not trimmed interest rates such as the European Central Bank (ECB), since oil prices and food had decreased.
On Monday, he continued his attack on Powell, calling him “loser” and saying he needs to lower interest rates “Now!” Therefore, fearful traders seeking security turned to the Swiss Franco, which has appreciated more than 6% during the last eight days of negotiation.
Forecast of the USD/CHF price: technical perspective
The technicians suggest that the USD/CHF should extend their losses, but sellers need to gain impulse and exceed the minimum of April 21, 0.8038. If it is exceeded, the torque could reach the level of 0.79 for the first time since September 2011.
The Relative Force Index (RSI) is oversight, but since it has not been able to overcome the last peak, it suggests that the bassists remain in command.
On the contrary, buyers need to recover the peak of April 21, 0.8163, so that they can challenge the next level of resistance that is the maximum of April 14, 0.8267.
Franco Swiss Price this week
The lower table shows the percentage of change of the Swiss Franco (CHF) compared to the main currencies this week. Franco Swiss was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.01% | -0.08% | -0.02% | 0.03% | 0.07% | -0.12% | |
| EUR | 0.05% | 0.03% | -0.06% | 0.00% | 0.03% | 0.11% | -0.08% | |
| GBP | 0.01% | -0.03% | -0.09% | -0.04% | 0.00% | 0.08% | -0.11% | |
| JPY | 0.08% | 0.06% | 0.09% | 0.08% | 0.11% | 0.24% | 0.03% | |
| CAD | 0.02% | -0.00% | 0.04% | -0.08% | 0.04% | 0.09% | -0.11% | |
| Aud | -0.03% | -0.03% | -0.01% | -0.11% | -0.04% | 0.06% | -0.13% | |
| NZD | -0.07% | -0.11% | -0.08% | -0.24% | -0.09% | -0.06% | -0.18% | |
| CHF | 0.12% | 0.08% | 0.11% | -0.03% | 0.11% | 0.13% | 0.18% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Swiss Franco from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the ChF (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
