USD/CHF fighting back towards 0.9100 as Swiss Franc tries to pump the brakes

• The USD/CHF in dropping into new daily lows near 0.9140.
• CHF bidders are looking to rebound from consistent declines against the USD.
• The trading week is set to be capped off by US Dollar flows heading into Friday's NFP.

The USD/CHF is extending a rebound from recent highs as CHF bulls are set to push the Swiss Franc (CHF) back to the 0.9100 handle against the US Dollar (USD). 

The Swiss National Bank (SNB) delivered a rapid-fire five consecutive rate hikes this year, and now the Swiss central bank is set to hold steady as it surveys the results of its labors.

Switzerland is now poised as the pre-eminent recovery case for the European Union (EU), with the Swiss economy sporting one of the lowest inflation rates in the world and the SNB stands tall as one of the few central banks with inflation measures below their target range of 0-2%.

Swiss inflation fell 0.1% in September, and annualized inflation measured 1.7%, far below the EU's average 4.3% inflation for the same period.

Analysts call for further Franc firmness ahead

Analysts at MUFG are expecting Swiss Franc strength to continue looking forward on the back of wobbly global economic growth.

Franc strength to be more evident against the US Dollar in 2024 – MUFG

On the US side, Initial Jobless Claims stumped expectations, coming in at a forecast-beating 207K versus the 210K expected. The previous jobless claims reading was revised upwards from 204K to 205K.

Next up, traders will be looking ahead to Friday's US Non-Farm Payrolls. NFP is forecast to print at 170K this month, compared to the previous reading of 187K.

USD/CHF technical outlook

The USD/CHF is down 0.40% or just under 40 pips in Thursday's trading, slipping further back from the recent highs near 0.9250. The Franc has fallen significantly against the US Dollar in recent history, and the Greenback has climbed over 8% against the CHF from the last bottom at 0.8550.

The trick for USD/CHF bidders will be to establish a bullish continuation should bids fall back to the 200-day Simple Moving Average (SMA) near 0.0925, while sellers will want to make a decisive break of the same level and push past the 100-day SMA near 0.8900.

USD/CHF daily chart

USD/CHF technical levels