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USD/CHF trades softer near 0.9050 in Tuesday’s early European session. 

Fed’s Kashkari said if inflation continues to stall, no rate cuts would be a possible scenario.

The rising Middle East geopolitical tensions might boost safe-haven flows, benefiting the CHF.  

The USD/CHF pair trades on a weaker note around 0.9050 during the early European session on Tuesday. The downtick of the pair is backed by the weaker US Dollar (USD). Nonetheless, the upbeat US March employment report and the hawkish comments from the Federal Reserve (Fed) officials might cap the downside of the USD/CHF pair. 

The US employment report for March showed that the economy added more jobs than expected, prompting speculation that the Fed might delay the easing cycle. The odds of a June rate cut declined to below 50% from a week earlier around 57%, according to the CME’s FedWatch tool. 

The Fed Chair Jerome Powell stated that the central bank could cut rates if the US economy continued on its current course. Meanwhile, Fed Governor Michelle Bowman said last week that the Fed might need to act further to ease price pressures. Minneapolis Fed President Neel Kashkari noted that he penciled in two interest rate cuts this year but if inflation continues to stall, no rate cuts would be a possible scenario. Investors will take more cues from the US Consumer Price Index (CPI) data for March, due on Wednesday. The firmer-than-expected reading could lower expectations for Fed rate cuts in June and lift the US Dollar (USD), while softer reading could spur speculation about rate cuts. 

On the Swiss front, the likelihood of an immediate ceasefire between Israel and Hamas remained gloomy, as the two sides had failed to reach an agreement despite repeated attempts by the US and its allies to help negotiate peace. Additionally, the top Iranian military advisor warned that none of the Israeli diplomatic missions are safe anymore after this week’s attack on the Iranian Consulate in Syria, per, Anadolu Agency reports. The escalating tensions surrounding geopolitical tensions in the Middle East could boost safe-haven assets like the Swiss Franc (CHF) and create a headwind for the USD/CHF pair. 

USD/CHF

OVERVIEW Today last price 0.9049 Today Daily Change -0.0005 Today Daily Change % -0.06 Today daily open 0.9054

 

TRENDS Daily SMA20 0.8958 Daily SMA50 0.8846 Daily SMA100 0.8744 Daily SMA200 0.8821

 

LEVELS Previous Daily High 0.9066 Previous Daily Low 0.9012 Previous Weekly High 0.9096 Previous Weekly Low 0.8998 Previous Monthly High 0.9072 Previous Monthly Low 0.873 Daily Fibonacci 38.2% 0.9045 Daily Fibonacci 61.8% 0.9032 Daily Pivot Point S1 0.9022 Daily Pivot Point S2 0.899 Daily Pivot Point S3 0.8968 Daily Pivot Point R1 0.9076 Daily Pivot Point R2 0.9097 Daily Pivot Point R3 0.9129

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