Solid News

During the Asian session, the USD/CHF pair shows ambiguous trading dynamics, holding near the local lows of April 14, renewed yesterday.

Demand for the US dollar remains quite low as investors continue to assess the prospects for a review of the US Federal Reserve's monetary policy on the back of weaker data on consumer and industrial inflation, which retreated from a peak of 9.1% to 8.5% in July, while analysts' forecasts assumed growth of 8.7%. The indicator showed zero dynamics after rising by 1.3% MoM a month earlier. The Core consumer price index (excluding energy and food) for the same period fell from 0.7% to 0.3% MoM but remained at the same 5.9% YoY.

Despite the first signs of a slowdown in inflation in the country, the regulator adheres to the previous vector of tight monetary policy, and in September, the interest rate can still be raised by 75 basis points if the data on gross domestic product and the situation on the labor market have it. However, inflation may return as analysts point out that the current decline is mainly due to a correction in energy prices.

Thomas Grunwald, the spokesman for the Federal Office for Supply Economics (OFAE) at the Swiss National Ministry of Economy, announced the readiness of the authorities to restrict energy consumption in the coming winter in the event of a shortage of resources, the likelihood of which is assessed as extremely high, and in the Swiss Federal Commission for Electricity (ElCom) noted that rolling blackouts in some regions of the country in winter will become quite common and can last for several hours, and urged the population to stock up on enough firewood and candles for this eventuality.

On the daily chart, Bollinger bands are steadily declining: the price range is expanding from below. However, it is not keeping with the burst of the "bearish" sentiment. The MACD indicator is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic, having dropped below "20", reversed into a horizontal plane, signaling that the US dollar may become oversold in the ultra-short term.

Resistance levels: 0.9469, 0.9520, 0.9594, 0.9650. | Support levels: 0.9400, 0.9350, 0.9300, 0.9250.