The pair climbs for a second day amid firmer USD demand ahead of key US CPI figures shaping Fed rate expectations.
The USD/CHF pair extended gains for a second consecutive session, trading above the 0.7800 level during Asian hours. The move comes as investors await the latest US Consumer Price Index report, which will influence expectations for Federal Reserve policy amid speculation of a potential year-end rate hike.
Spot prices remain near a nearly two-month low reached last week, with traders hesitant to commit to fresh positions before the inflation data. Rising US-Iran tensions have supported crude oil prices, stoking inflation concerns and reinforcing the USD’s reserve currency appeal, providing further support for the pair.
Technical indicators present a mixed picture. The Relative Strength Index has risen above 50, while the MACD histogram turned mildly positive, though the broader trend still suggests a capped recovery. The pair’s failure to sustain gains above the 200-period SMA on the 4-hour chart keeps near-term bias tilted toward bears.