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22 May 2015
USD/CHF reverses losses and climbs to 3-week highs
FXStreet (Córdoba) - USD/CHF bounced sharply off daily lows and rallied to fresh 3-week highs propelled by better-than-expected US inflation data.
US CPI rose by 0.1% in April but fell 0.2% year-over-year. However,excluding volatile food and energy categories, the so-called core inflation, prices climbed 0.3%, posting the largest increase since January 2013, and a 1.8% in the twelve months to April.
Core figures underpinned the greenback across the board, as they are moving closer to the 2.0% target of the Federal Reserve, a condition the bank would like to achieve before hiking rates.
USD/CHF rose more than 100 pips following the release and reached its highest level since Apr 30 at 0.9443 in recent dealings. At time of writing, the pair is trading at the 0.9340 zone, recording a 0.75% gain on Friday, having recovered from a low of 0.9285, where the 10-day SMA offered support.
US CPI rose by 0.1% in April but fell 0.2% year-over-year. However,excluding volatile food and energy categories, the so-called core inflation, prices climbed 0.3%, posting the largest increase since January 2013, and a 1.8% in the twelve months to April.
Core figures underpinned the greenback across the board, as they are moving closer to the 2.0% target of the Federal Reserve, a condition the bank would like to achieve before hiking rates.
USD/CHF rose more than 100 pips following the release and reached its highest level since Apr 30 at 0.9443 in recent dealings. At time of writing, the pair is trading at the 0.9340 zone, recording a 0.75% gain on Friday, having recovered from a low of 0.9285, where the 10-day SMA offered support.