Foreign exchange market update: Another day, another $

Foreign exchange market update: Another day, another $
  • News
  • Currency exchange

USD/CHF increases

The expected interest rate rise in the USA is boosting the US dollar across the board and in recent weeks the US dollar has also risen against the franc. The USD/CHF 0.9600 rate is currently in the focus of market participants. A strong labour market report from the US could ultimately be responsible for a manifestation of interest rate expectations in the US and the dollar once again gaining against the franc.

The seasonally adjusted US unemployment rate was 3.6% in March 2022; 2.4% lower than last year. The labour market is trending towards full employment and could boost the already high inflation figures even further. In search of labour, companies are willing to pay higher salaries, which in turn contributes to a continuous sustained rise in inflation. In March, the inflation rate in the US amounted to 8.5%.

Crucial: the 0.9600 mark

From a chart perspective, we have been in an upward trend since January 2021. The strong rise of the US dollar in recent weeks has now brought the marks of 0.9600 and 0.9800 back as possible targets of this upward movement. If these two important resistances are overcome in the long term, the focus will shift back to levels around 1.0200. In addition to the omnipresent topic of interest rates, a ceasefire and a strengthening euro could potentially slow down this trend or lead to a trend reversal.

Support 0,9350
Support 0,9200

Resistance 0,9600
Resistance 0,9800

The chart below shows the current upward trend of the USD/CHF currency pair:

Fx market update - USDCHF rises
Source: TradingView

If the USD/CHF rate does not rise above the 0.9600 respectively 0.9800 level, it could move back towards the current trendline. We can look forward to the next labour market report on 6 May 2022.

For more information on the foreign exchange market, please feel free to contact our forex experts!

Please note that this elaboration was completed on 25/04/2022 11:08 CET.
This article is for informational purposes only and does not take into account the particular circumstances of the readers. It does not constitute financial advice. The content of this article is not intended as an offer or solicitation to buy or sell any fx or to take any other action and are not intended to form the basis or part of any contract. Clients should seek independent professional advice and draw their own conclusions with respect to the suitability of the transaction, including its economic merits and risks.The information contained in this article is public data and has been obtained from sources believed by amnis to be reliable and accurate. Amnis Treasury Services AG makes no warranty or representation as to its correctness, accuracy or completeness for a particular purpose. Neither Amnis Treasury Services AG nor any of its employees shall be liable for any damages whatsoever arising out of the use of this article, its contents or otherwise.

Set up rate alert
Gerhard Scharinger
Gerhard Scharinger is the Head Markets of amnis. He is an expert in Foreign Exchange, Treasury Management, Economics and Hedging. Besides various published articles and foreign exchange news he is also an international speaker at different events. Follow him and amnis on LinkedIn, Twitter and Facebook to keep up with the latest industry news and insights.
Cookie Consent with Real Cookie Banner