USD/CHF attracts some sellers near 0.8920 in Thursday’s early European session, down 0.20% on the day.
•Traders raise their bets on Fed rate cuts this year after the cooler PCE inflation and weaker Manufacturing PMI data.
•The Swiss unemployment rate stood at 2.3% in May, remains unchanged and matched market expectations.

The USD/CHF pair edges lower to 0.8920 during the early European session on Thursday. The weaker US Dollar (USD) amid growing speculation that the Federal Reserve (Fed) will start lowering borrowing costs from the September meeting creates a headwind for the pair.

The recent cooler US Personal Consumption Expenditures (PCE) Price Index data released last week and the weaker Manufacturing PMI report earlier this week revived hopes the Fed would cut interest rates this year. This, in turn, exerts some selling pressure on the USD broadly. Financial markets have priced in about 70% possibility of Fed rate cuts in September, up from 54.9% at the beginning of the week, according to the CME FedWatch tool.

Investors will shift their attention to the release of US May employment data on Friday, including the US Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings. The NFP figure is expected to see 185,000 job additions in May, while the Unemployment Rate is estimated to remain steady at 3.9% in the same period. The softer employment market data might convince the Fed to feel more confident about easing monetary policy.

On the Swiss front, the unemployment rate in Switzerland came in at 2.3% in May, according to the State Secretariat for Economic Affairs (SECO) on Thursday. The figure was unchanged from April and matched the estimation. A further report on Tuesday revealed that Switzerland’s monthly Consumer Price Index (CPI) inflation rose 0.3% MoM in May and was below the market consensus of 0.4%. The cooler inflation data prompted the expectation of rate cuts from the Swiss National Bank (SNB) on June 28, and this might weigh on the Swiss Franc (CHF) in the near term.

USD/CHF

Overview

Today last price 0.8918
Today Daily Change -0.0017
Today Daily Change % -0.19
Today daily open 0.8935

Trends

Daily SMA20 0.9068
Daily SMA50 0.9082
Daily SMA100 0.8935
Daily SMA200 0.8891

Levels

Previous Daily High 0.8949
Previous Daily Low 0.8897
Previous Weekly High 0.9154
Previous Weekly Low 0.9002
Previous Monthly High 0.9225
Previous Monthly Low 0.8988
Daily Fibonacci 38.2% 0.8929
Daily Fibonacci 61.8% 0.8917
Daily Pivot Point S1 0.8905
Daily Pivot Point S2 0.8876
Daily Pivot Point S3 0.8854
Daily Pivot Point R1 0.8957
Daily Pivot Point R2 0.8979
Daily Pivot Point R3 0.9009

USD/CAD depreciates as mixed data from the US fuels speculations of a rate cut by the Fed.
•CME FedWatch Tool suggests the probability of a Fed rate cut in September has increased to nearly 70.0%.
•The appreciation of crude Oil prices supports the commodity-linked Canadian Dollar.

USD/CAD retreats after two days of gains, trading around 1.3680 during the Asian session on Thursday. The US Dollar (USD) struggled after mixed economic data was released in the United States (US), which fueled interest rate cut speculations by the US Federal Reserve (Fed). Investors are awaiting key US employment data releases on Friday, including Average Hourly Earnings and Nonfarm Payrolls.

The investors’ sentiment of the Fed’s rate cut leads to the weakening of the US Treasury yields, undermining the US Dollar and USD/CAD pair. Investors await the key US employment data releases on Friday, including the Average Hourly Earnings and Nonfarm Payrolls.

A Reuters poll conducted from May 31 to June 5 has indicated that nearly two-thirds of economists now predict an interest rate cut in September. As per the CME FedWatch Tool, the probability of a Fed rate cut in September by at least 25 basis points has increased to nearly 70.0%, up from 47.5% a week earlier.

On the Loonie front, the upside of the crude Oil prices is supporting the demand of the Canadian Dollar (CAD), given the fact that Canada is the largest Oil exporter to the United States (US). West Texas Intermediate (WTI) Oil price extends its gains for the second session, trading around $74.30 per barrel, by the press time.

In June, the Bank of Canada (BoC) carried out a widely anticipated 25 basis points reduction in its key interest rate, bringing it to 4.75%. This move marked a departure from 11 consecutive months of peak interest rates in the tightening cycle. The sustained disinflation trends in Canada toward the central bank’s target range of 1%-3% have supported a less stringent monetary policy stance. Traders are now shifting their focus to Friday’s upcoming Canadian labor figures.

USD/CAD

Overview

Today last price 1.3679
Today Daily Change -0.0016
Today Daily Change % -0.12
Today daily open 1.3695

Trends

Daily SMA20 1.3659
Daily SMA50 1.3666
Daily SMA100 1.3585
Daily SMA200 1.3577

Levels

Previous Daily High 1.3742
Previous Daily Low 1.3666
Previous Weekly High 1.3735
Previous Weekly Low 1.3615
Previous Monthly High 1.3783
Previous Monthly Low 1.359
Daily Fibonacci 38.2% 1.3713
Daily Fibonacci 61.8% 1.3695
Daily Pivot Point S1 1.366
Daily Pivot Point S2 1.3624
Daily Pivot Point S3 1.3583
Daily Pivot Point R1 1.3736
Daily Pivot Point R2 1.3777
Daily Pivot Point R3 1.3812

USD/CAD depreciates as mixed data from the US fuels speculations of a rate cut by the Fed.
•CME FedWatch Tool suggests the probability of a Fed rate cut in September has increased to nearly 70.0%.
•The appreciation of crude Oil prices supports the commodity-linked Canadian Dollar.

USD/CAD retreats after two days of gains, trading around 1.3680 during the Asian session on Thursday. The US Dollar (USD) struggled after mixed economic data was released in the United States (US), which fueled interest rate cut speculations by the US Federal Reserve (Fed). Investors are awaiting key US employment data releases on Friday, including Average Hourly Earnings and Nonfarm Payrolls.

The investors’ sentiment of the Fed’s rate cut leads to the weakening of the US Treasury yields, undermining the US Dollar and USD/CAD pair. Investors await the key US employment data releases on Friday, including the Average Hourly Earnings and Nonfarm Payrolls.

A Reuters poll conducted from May 31 to June 5 has indicated that nearly two-thirds of economists now predict an interest rate cut in September. As per the CME FedWatch Tool, the probability of a Fed rate cut in September by at least 25 basis points has increased to nearly 70.0%, up from 47.5% a week earlier.

On the Loonie front, the upside of the crude Oil prices is supporting the demand of the Canadian Dollar (CAD), given the fact that Canada is the largest Oil exporter to the United States (US). West Texas Intermediate (WTI) Oil price extends its gains for the second session, trading around $74.30 per barrel, by the press time.

In June, the Bank of Canada (BoC) carried out a widely anticipated 25 basis points reduction in its key interest rate, bringing it to 4.75%. This move marked a departure from 11 consecutive months of peak interest rates in the tightening cycle. The sustained disinflation trends in Canada toward the central bank’s target range of 1%-3% have supported a less stringent monetary policy stance. Traders are now shifting their focus to Friday’s upcoming Canadian labor figures.

USD/CAD

Overview

Today last price 1.3679
Today Daily Change -0.0016
Today Daily Change % -0.12
Today daily open 1.3695

Trends

Daily SMA20 1.3659
Daily SMA50 1.3666
Daily SMA100 1.3585
Daily SMA200 1.3577

Levels

Previous Daily High 1.3742
Previous Daily Low 1.3666
Previous Weekly High 1.3735
Previous Weekly Low 1.3615
Previous Monthly High 1.3783
Previous Monthly Low 1.359
Daily Fibonacci 38.2% 1.3713
Daily Fibonacci 61.8% 1.3695
Daily Pivot Point S1 1.366
Daily Pivot Point S2 1.3624
Daily Pivot Point S3 1.3583
Daily Pivot Point R1 1.3736
Daily Pivot Point R2 1.3777
Daily Pivot Point R3 1.3812