Solid News

Against the backdrop of the growth of the US dollar, the USD/CHF pair is trading around 0.9589.

The situation in the Swiss economy is relatively stable: the labor market is showing strength, which is confirmed by data from the Federal Statistical Office (FSO). Thus, the number of employed in the second quarter increased by 1.6% compared to last year, and the number of hours worked per week increased by 3.0%, while the unemployment rate calculated by the International Labor Organization was 4.1%, having decreased from 5. 0% a year earlier.

The influence of the US dollar on the USD/CHF currency pair has recently increased significantly, as it exceeded 107.000 in the USD Index after the publication of data on the number of applications for unemployment benefits, which fell to 250.0K against 252.0K a week earlier, which is much lower than the forecast of analysts who assumed 265.0K applications. Philadelphia Fed's index of manufacturing activity also showed a significant improvement, which came out of the negative zone and amounted to 6.2 points in August against –12.3 points in July, as well as the positive dynamics of the index of leading indicators to –0.4% from –0.7% a month earlier. Under such conditions, it can be assumed that the US Federal Reserve will indeed reduce the pace of monetary policy tightening and increase its interest rate by 50.0 basis points, not by 75.0 basis points, as previously planned.

On the weekly chart of the asset, the price is correcting within the downwards Triangle pattern, preparing to continue the decline. Technical indicators maintain a weakening sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram is forming up bars in the sell zone.

Resistance levels: 0.9620, 0.9816. | Support levels: 0.9553, 0.9408.