- USD/CHF gains ground to around 0.8840 in Wednesday’s early European session.
- The renewed US Dollar demand provides some support to the pair ahead of US CPI report.
- Global economic uncertainty and geopolitical tensions might boost the safe-haven flows, benefiting the CHF.
The USD/CHF pair trades in positive territory for the third consecutive day near 0.8840 during the early European session on Wednesday. The uptick of the pair is bolstered by the renewed US Dollar (USD) demand. Traders will keep an eye on the US February Consumer Price Index (CPI) inflation data, which is due later on Wednesday.
Meanwhile, the US Dollar Index (DXY), a measure of the USD’s value relative to its most significant trading partners’ currencies, rebounds to around 103.60 after bouncing off the multi-month lows near 103.20. Nonetheless, the Greenback faces some headwinds amid concerns mounted over a US slowdown and the impact of tariffs on global economic growth.
Market players will take more cues from the US CPI release on Wednesday. The headline CPI is expected to show an increase of 0.3% MoM in February. On an annual basis, headline inflation is forecast to show an increase of 2.9%, while core CPI is estimated to show a rise of 3.2% during the same reported period.
Houthi spokesman said late Tuesday that they will attack any Israeli ship that violates the group’s ban on Israeli ships passing through the Red and Arabian Seas, the Bab al-Mandab Strait, and the Gulf of Aden, effective immediately. Heightened safe-haven demand amid growing concerns over global economic conditions and geopolitical tensions in the Middle East could boost the Swiss Franc (CHF) and create a headwind for USD/CHF.
