Since August 2022 at 0.937, USDCHF has been in a bullish sequence as this was supported by the recent dollar strength. This may stall as dollar seems like it is due for a breather, but this is only temporarily. In my opinion, this stall would be a short-term correction prior to a continuation to the upside.
Taking into SNB’s recent commentary it seems like they are targeting a real stability to fight inflation. Switzerland’s inflation is around 4% below its trading partners which would mean the nominal exchange would need to be at least 4% stronger to support a stable exchange rate. This would support CHF’s strength in the near-term future for at least a few weeks.
Currently, USDCHF is at parity, but this may reverse as it seems like the pair is due for a medium-term correction but the bigger picture is telling us that a continuation to support dollar strength is still in play for at least up to Q2 2023.
Lets do a top down on USDCHF
Taking into SNB’s recent commentary it seems like they are targeting a real stability to fight inflation. Switzerland’s inflation is around 4% below its trading partners which would mean the nominal exchange would need to be at least 4% stronger to support a stable exchange rate. This would support CHF’s strength in the near-term future for at least a few weeks.
Currently, USDCHF is at parity, but this may reverse as it seems like the pair is due for a medium-term correction but the bigger picture is telling us that a continuation to support dollar strength is still in play for at least up to Q2 2023.
Lets do a top down on USDCHF