USD/CHF traverse up 0.9200-mark, traders looks for fresh insight

• USD/CHF trades beyond 0.9200, Fed hike remains anticipatory.
• There is optimism for the swissie, but US CPI pain persists.
• USD/CHF on Friday climbs multi-week top, US dollar remains firmly bid. 

USD/CHF wants more, trading under renewed vigour around 0.9220, mainly on the back of the mighty US dollar that rebounded to the highest level since July 2020. The Federal Reserve's early policy tightening prospects also bellows traders' zeal.  

After the latest CPI shocker, traders digest the inflation data, rekindling the greenback and pushing the USD/CHF pair higher. Consumer prices climbed at the quickest annual rate since 1990 in October, according to the US Consumer Price Index (CPI) report released on Wednesday. As a result, bets are in place that the Fed would be obliged to use more aggressive policies to combat persistently high inflation. 

It is to be noted, the Swiss National Bank's (SNB) tolerance for currency strength keeps investors relying on the franc's stability as a hedge against market uncertainty.  Analysts believe that Swiss policymakers shall retain their hands-off approach regarding the currency's appreciation, as expectations of interest rate rises from other central banks may limit upward pressure on the franc. On the monetary policy front, the SNB stressed the need to maintain an expansionary monetary policy stance, ensuring price stability and providing ongoing support to the Swiss economy, despite moves by other central banks to start normalizing policy.

Now looking ahead, with sparsely populated economic activity, investors will feed on leftovers of US inflation figures. This has been the major catalyst for the USD/CHF traders this week. Investors look for quicker rolling back of the Fed's easy money, which will help the swiss franc pare any loss.

USD/CHF Technical Levels

After the Thursday uptick, USD/CHF bulls may try to reclaim a one-month high of 0.9338. The daily chart shows near term gains; the upward trajectory could test 0.9400 psychological level. The price can converse negatively, wherein that the support level of 100-day Simple Moving Average (SMA) at 0.9169 remains first, followed by 0.9088, weekly low.