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Franc Seized the Initiative in the Pair

9/12/2022 12:53 PM

The franc is actively gaining in value against the backdrop of depreciation of the US currency, currently trading around 0.9595, although the situation in the national economy remains difficult.

At the end of last week, unemployment data was published: the figure has been holding at 2.0% for the third consecutive month, which is the average for Switzerland, recorded even before the coronavirus pandemic. The manufacturing sector corrected by –0.5% after seven quarters of growth, primarily due to falling exports in the chemical and pharmaceutical industries. Analysts suggest that in August, the producer price index will add 0.1%, significantly yielding to the early summer indicator of 1.0–1.2%, while the value may continue to correct and consolidate below 6.3% YoY, reflecting the second month of negative dynamics in a row.

Despite achieving 108.5 points in the USD Index, the US dollar is trading above the average value ​​at the beginning of the year. As for the local dynamics, it will completely depend on tomorrow's publication of data on consumer prices. Analysts assume that the energy component of inflation will weaken its influence, and the indicator will drop from 8.5% to 8.1%, while the core value, which does not consider fuel and food prices, will adjust from 5.9% to 6.1%.

On the daily chart, the price is trading within a downwards corridor, and technical indicators are already ready for the next reversal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram, being in the buying zone, is ready to cross the transition level.

Support levels: 0.9539, 0.9412. | Resistance levels: 0.9620, 0.9770.

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