- USD/CHF slumps to near 0.8200 ahead of US-China trade talks.
- The SNB is expected to cut interest rates in the policy meeting on June 19.
- Investors await the US CPI data for fresh cues on the Federal Reserve’s (Fed) monetary policy outlook.
The USD/CHF pair slides over 0.2% during European trading hours on Monday and struggles to hold the key level of 0.8200. The Swiss Franc pair weakens as the US Dollar underperforms across the board ahead of the meeting between trade negotiators from the United States (US) and China in London during the day.
The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, slumps to near 98.85.
Ahead of the US-China trade talks, President Donald Trump has expressed confidence that discussions would go very well.
On the economic front, investors await the US Consumer Price Index (CPI) data for May, which will be released on Wednesday. As measured by the CPI, inflationary pressures are expected to have grown at a faster pace than previously reported in April.
Though investors have underpinned the Swiss Franc against the US Dollar, it is underperforming its other peers on firm expectations that the Swiss National Bank (SNB) will reduce interest rates in the policy meeting next week.
USD/CHF faces selling pressure near the 20-day Exponential Moving Average (EMA), which trades around 0.8250.
The 14-day Relative Strength Index (RSI) strives to hold the 40.00. A fresh bearish momentum would activate if the RSI falls below that level.
The asset could slide towards the April 11 low of 0.8100 and the April 21 low of 0.8040 if it skids below the June 2 low of 0.8157.
On the contrary, a recovery move in the pair above the psychological level of 0.8500 will open the door for more upside towards the April 10 high of 0.8580 and the April 8 high of 0.8611.
USD/CHF daily chart
