The USD/CHF price continued rising as the US dollar index continued surging. It rose to the parity level as investors waited for the upcoming FOMC minutes and the latest US consumer price index (CPI) data. It has risen by more than 6% from the latest in August.
FOMC minutes and US inflation data
The USD/CHF price continued rising as the market waited for the upcoming FOMC minutes and the US inflation data. These minutes will provide more clarity on the deliberations that happened during this week’s meeting.
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In that meeting, the bank decided to deliver its third 0.75% rate hike of the year. This means that the bank has hiked interest rates by 300 basis points this year. And analysts expect that the bank will continue hiking rates in the coming months. They expect it to hike by 0.75% in November and 0.50% in December.
Most Fed officials who have talked lately have insisted that the bank will likely keep hiking rates in the coming months. Some of the recent speakers are Vice Chair Lael Brainard, Charles Evans, and Raphael Bostic.
The USD/CHF price will next react to the latest US inflation data scheduled for Thursday. Economists polled by Reuters expect the data to show that inflation remained above the Fed’s target of 2%.
Precisely, those polled by Reuters believe that the headline consumer price index (CPI) dropped from 8.3% in August to 8.1% in September. On a MoM basis, analysts believe that inflation rose from 0.1% to 0.2%.
Excluding the volatile food and energy prices, analysts expect that inflation rose from 6.3% to 6.5%. Still, there is a likelihood that inflation will be much higher than expected. For example, forex news on Wednesday showed that the producer price index (PPI) dropped from 8.7% to 8.5%.
USD/CHF forecast
The daily chart shows that the USD/CHF price has been in a strong bullish trend in the past few months. Along the way, it managed to move above the important resistance level at 0.9885, which was the highest level on September 6.
The pair has remained above the 25-day and 50-day moving averages while the MACD has moved above the important neutral level. Other oscillators have continued rising as well.
Therefore, the pair will likely continue rising as investors react to relatively strong US inflation and hawkish FOMC minutes. If this happens, the next key resistance to watch will be at 1.0062, which was the highest level on May 12.
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