The USD to CHF rate has been dropping and has recently reached its support level. 1 USD to CHF is at 0.875. Meanwhile, the Swiss France has been under pressure from certain indicators, which may explain this recent poor performance. Specifically, it had been suffering due to data from the US Dollar Index (DXY), which had been anticipating data on retail sales in the US and had just been released.
The index has been fluctuating in a rather tight range recently, at around 103. Consumer spending data will likely soon move this price, resulting in a breakout of some sort. Currently, analysts are expecting a rise in spending to be higher (0.4%) than that last month (0.2%). Therefore, there is good reason for positive expectations. Retail sales will likely follow suit on this occasion outside the automobile industry.
Influential Factors on USD to CHF Exchange Rate
There have been several factors shoring up the position of the US dollar. The main one is poor performance in other markets. One of these is in the UK, as the S&P 500 has indicated that London has been experiencing losses. Furthermore, China has been undergoing deflation, pointing to an imminent slowdown in its economy. All this has made for a wary mood among investors, who have been moving to the US dollar as a safe haven currency.
As for the Swiss Franc, there have been some indicators there as well that might affect the USD to CHF exchange rate. There is a likely pattern of change judging by the prices of imports and producers as of July. There was a contraction of 0.1% over the month, and over the year there has been a 0.6% contraction. The Swiss have, therefore, had strong and effective measures to curb inflation thanks to the measures of the Swiss National Bank. There are some indicators of the bank’s future moves. They will likely increase interest rates soon, as early as September, going up by 25 bips. This would mean an inflation rate of 2% if all goes well. It remains to be seen how the USD to CHF rate changes.
