The USDCHF pair remains in a range as traders await the US tariffs announcement on Wednesday. The USD gained modestly on Monday after stronger-than-expected PMIs, supported by a drop in US Consumer Confidence and rising inflation expectations.
Market sentiment is cautious, anticipating two to three rate cuts in 2023, while the SNB reduced the interest rate by 25 basis points to 0.25%. There are no indications of further cuts from the SNB, suggesting a long pause in the easing cycle.
Usdchf Trading Range
Currently, USDCHF is trading within a 100-pip range between support at 0.8760 and resistance at 0.8860. Players in the market are likely to either sell at resistance or wait for a breakout above 0.8800.
Further analysis shows a narrower range around the 0.88 area on the 1-hour chart. Upcoming economic data includes US Jobless Claims and Canadian GDP, with the US PCE report set for Friday.
The currency pair has held steady within a narrow range as market participants await clarity on US trade policy. Washington’s upcoming tariff decision carries weight, given its potential to influence both sentiment and demand for the dollar. Monday’s trading reflected a measured response to economic data, where stronger US PMIs provided some support to the greenback, while weakening consumer confidence tempered those gains. Inflation expectations crept higher, reinforcing a cautious approach across markets.
A wait-and-see mindset persists, with traders factoring in two to three rate cuts for the year. Meanwhile, the Swiss National Bank opted to lower rates to 0.25% but made no indication of further adjustments. This stance suggests that policymakers may prefer to assess economic conditions before making additional moves. A prolonged period of unchanged rates in Switzerland contrasts with expectations for easing in the United States, adding uncertainty to the pair’s direction.
Upcoming Economic Data
USDCHF remains firmly bound within a 100-pip corridor, with support at 0.8760 and resistance at 0.8860. Those involved in short-term trades are likely to take advantage of these well-defined levels. Selling pressure tends to emerge near the upper boundary, while momentum traders may hold off until a sustained push above 0.8800 takes shape. The tighter consolidation around 0.88 on lower timeframes suggests a breakout could gain traction once external catalysts appear.
For now, upcoming economic releases will set the tone. US jobless claims provide insight into labour market conditions, while Canadian GDP data could offer a broader view of North American economic momentum. However, many will look ahead to Friday’s PCE data, which remains a key measure of inflation closely monitored by policymakers. A surprise in either direction could alter expectations for future rate policy, ultimately affecting positioning in this currency pair.
