USD/CHF consolidates above 0.8670 with SNB Jordan's comments weigh on the Franc

• The USD remains steady near one-month highs, consolidating gains after a six-day rally.
• Comments by SNB Chief Thomas Jordan complaining about CHF strength are weighing on the Swissie.
• A moderate risk appetite is holding the USD back on Friday.

The US Dollar is consolidating gains near omne-month highs against the ASwiss Fran. The comments by SNB Chief, Thomas Jordan, suggesting that the strength of the Swiss Franc will determine the bank’s monetary policy decisions, is acting as a headwind for any significant CHF recovery.

The US Dollar remains buoyed with investors tempering rate-cut bets

In the US, the stronger-than-expected Jobless Claims and Retail Sales data have contributed to cool market hopes of early and aggressive Fed cuts in 2024, which has fuelled the US Dollar across the board.

Beyond that, an array of Federal Reserve policymakers have hit the wires, downplaying expectations of interest rate cuts in the coming months. Atlanta Fed President Raphael Bostic affirmed on Thursday that he does not expect rate cuts until the third quarter of the year.

The Dollar, however, is trading without a clear direction on Friday. A brighter market sentiment, and some profit-taking, as we head into the weekend, might be weighing the Greenback Later today the Michigan Consumer Sentiment Index and a speech by San Francisco Fed President, Mary Daly, might give a fresh push to the USD. 

USD/CHF Technical Analysis

The USD maintains its bullish structure intact after breaching the 38.2% Fibonacci retracement of the late 2023 decline, at 0.8675. The next targets are now  0.8720 and the 50% Fib retracement, at 0.8780 although the overbought levels on intra-day charts suggest that the current consolidation might extend.

Support levels are 0.8670 and 0.8635.

Technical levels to watch