USD/CHF fails to return above 0.9300 with the Dollar losing ground

• The US Dollar revisits session lows at 0.9275 after failure at 0.9300.
• The pair remains moving in recent ranges in a thin market session.
• Speculation about a potential US recession and Fed easing in 2023 are hurting Dollar demand.

The Greenback’s attempt to regain the 0.9300 level seen on Wednesday’s early European session has been capped at 0.9305. The pair, however, remains within recent ranges, supported above 0.9275/80 and moderately positive on daily charts.

The USD treads water, weighed by Fed easing speculation

In absence of relevant macroeconomic releases this week, the cooling US inflation figures seen on Friday have boosted speculation about a slowdown on the Federal Reserve’s monetary tightening path in 2023, which is keeping Dollar bulls in check.

Furthermore, a recent batch of lackluster US indicators has spurred concerns about the possibility of a recession in 2023, which add pressure on the US central bank to abandon its hawkish stance ahead of schedule.

The US Dollar Index, as a matter of fact, is accelerating its reversal from session highs at 104.35, losing 0.2% on the daily chart after a moderately positive session opening and erasing Tuesday’s mild recovery.

Furthermore, the flat US Treasury bond yields are failing to stimulate Dollar bulls, while the market mood remains moderately upbeat, with the major European stock indexes in the green on the back of news that China is planning to end restrictions to inbound travelers from January 8.

Regarding the macroeconomic calendar, the Swiss ZEW survey has shown a larger-than-expected improvement in economic expectations, with a -42.8 reading in December against market expectations of -50.5 and from the -57.5 seen in the previous month.

During the North American session, the US Pending Home sales, the Richmond Fed Manufacturing index, and oil stocks figures might offer some distraction to currency traders.

Technical levels to watch