The Swiss Franc bullish momentum started in September has continued. The USDCHF pair is bullish while trading above the 0.9890 level. Should traders expect the sharp rally to continue?
5 October, OctaFX – The Swiss franc has lost significantly against the USD. This follows the SNB’s promise to leave rates unchanged in the negative territory. Today, Switzerland will release important data.
The consumer inflation is expected to have risen by 1.1% in September, which will be lower than August’s 1.2%. On a monthly basis, it is expected to rise by 0.2%. The core CPI, which excludes major products is expected to rise to an annualized rate of 0.6%, which will be higher than last month’s 1.5%.
Swiss Franc Continues Bullish Trend
The USDCHF pair continued the upward momentum started in September. Today, it reached an intraday high of 0.9925. As shown in the chart below, the momentum is currently with the dollar, which will likely continue.
However, as the pair inches closer to parity, traders should expect it to find resistance. This means that the sharp rally will likely be halted when the parity is reached as traders ponder what will happen next.
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