USD/CHF advances towards 1.0000 ahead of US PPI

• USD/CHF is approaching 1.000 as DXY strengthens on higher US inflation.
• The DXY is holding itself above 104.00 ahead of the US PPI.
• The flat jobless rate and CPI have pushed the Swiss franc into a negative trajectory over the last week.

The USD/CHF pair is moving north firmly after the release of the US Consumer Price Index (CPI) on Wednesday. The asset found significant bids at around 0.9874 and is now scaling sharply higher towards the psychological resistance of 1.0000.

It is worth noting that the major is displaying a broader consolidation in a range of 0.9874-0.9975 from Monday. No doubt the anxiety over the release of the US CPI was keeping investors on the edge. Now, the above-expected US inflation figure at 8.3% is telling a different story. The yearly inflation levels are at a peak now and the curve may start trending downside amid the strict deployment of quantitative measures by the Federal Reserve (Fed). No wonder the story of contained inflation is far from over and investors will continue to brace volatility at the higher side but price pressures will ease gradually.

The US dollar index (DXY) is trying to hold itself above 104.00 as the negative market sentiment has diminished the risk appetite of investors. In the New York session, investors will keep the US Producer Price Index (PPI) on the radar, which will provide further guidance to the market participants. The US PPI is seen at 10.7% on yearly basis.

On the Swiss front, the Swiss franc is underperforming continuously for the last week after the Swiss agencies reported the Unemployment Rate and CPI numbers. The former landed at 2.2% while the latter printed at 2.5%, both catalysts remained in line with the market consensus.