September 12, 2023 8:47 AM

USD/CHF maintains its position above 0.8900

USD/CHF maintains its position above 0.8900

Prior to the publication of the US Consumer Price Index (CPI), USD/CHF failed to recoup its losses from the previous day and hovered around 0.8910 in the early trading hours of Tuesday's European session. The weak performance of the US Dollar (USD) on Monday put negative pressure on the pair.

The strong data from China, particularly a return to positive inflation territory, also contributed to the USD/CHF pair's struggles. Additionally, the USD's weakness was exacerbated by hawkish comments made by Bank of Japan (BoJ) Governor Kazuo Ueda.

The US Dollar Index (DXY), which gauges how well the US Dollar (USD) is performing, surges higher at about 104.70. Due to the US bond rates' successful performance, the US dollar is recouping losses.

The US Consumer Price Index (CPI) data release is on Wednesday, but the US Dollar (USD) bulls take a cautious approach before it. This data release could have an impact on the pair and the mood of the market.

The market anticipates the headline Consumer Price Index (CPI) to climb by 0.5% month over month, which would be an improvement above the 0.2% figure from the prior period. In contrast, it is projected that Core CPI statistics would not change from 0.2%.

It is important to keep in mind that any variations from these inflation estimates could cause abrupt shifts in market sentiment and affect the bias in favor of the US Dollar (USD). Positive economic statistics from the US may also provide the dollar greater support.