Usdchf rises 1.17% to 0.87254 as markets digest economic indicators and political changes

USDCHF Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	1.17%	101.3 Pips
Week to-date	0.57%	49.4 Pips
November	1.04%	89.7 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

In the United States, several economic indicators have recently been updated, reflecting changes in the country’s economic landscape. The Federal Reserve has reduced the Federal Funds Rate from 5% to 4.75%, which could indicate an effort to stimulate economic growth by making borrowing cheaper. This move is typically aimed at boosting economic activity when growth shows signs of slowing. Additionally, the Bureau of Labor Statistics reported a revised preliminary estimate for Unit Labor Costs in Q3 to 2.4%, significantly higher than an earlier figure of 0.4%. This could suggest rising costs for businesses, which may impact profit margins unless passed on to consumers through higher prices. Meanwhile, the Department of Labor noted an increase in Initial Unemployment Insurance Claims, rising to 221,000 from a corrected figure of 218,000, indicating a slight uptick in unemployment claims. Furthermore, U.S. Nonfarm Business Labor Productivity has seen a reduction in Q3, decreasing to 2.2% from Q2’s 2.5%, hinting at a possible decline in economic output.

On the political front, Donald Trump has secured a victory over Harris in the 2024 U.S. presidential race, becoming the 47th president of the United States. This political development could impact both domestic and international policies, potentially influencing economic markets through anticipated policy changes by the new administration.

The recent changes in U.S. economic data and political outcomes are likely to have implications for the USDCHF currency pair. The drop in the Federal Funds Rate often leads to a decrease in the value of the dollar, as it makes holding the currency less attractive due to lower yields. However, the rise in the USDCHF exchange rate by 1.17% suggests a temporary strengthening of the dollar against the Swiss franc, possibly influenced by market perceptions of economic resilience or other geopolitical factors. Nevertheless, the overall trend may keep the pair in consolidation as markets await clearer direction from economic policy shifts under the new administration and potential reactions from Swiss monetary policies.

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What can we expect from USDCHF today?

USDCHF on Thursday rose 1.17% to 0.87254. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.86969 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.87740 or trades above daily pivot 0.87355. Break above could target R1 at 0.87639. While to the downside, we are looking at 0.86969 (S1) and daily low of 0.87070 as support levels. USDCHF need to break on either side to indicate a short-term bias. A break above 0.87740 may suggest continuation after recent positive movement.

For the week to-date, take note that USDCHF is bullish as the pair continued to trade higher and is up by 0.57% over the past few days.

Key levels to watch out:

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