USD/CHF rises to the 0.95 handle ahead of US GDP and PCE on Wednesday

• US GDP and PCE are scheduled at 12:30 GMT on Wednesday.

• The USD is up 0.5% so far on Tuesday as risk-appetite is coming back. 

The USD/CHF is trading at about 0.9480 up 0.26% on Tuesday as geopolitical tensions between the US and China eased. The US stock indices have rebounded since Monday, as risk appetite is back in Wallstreet.

The Dollar Index rose from 88.95 to 89.63 at the time of writing, however, the dollar rebound is expected to be short-lived as “coming US-interest-rate hikes are already priced in and additional hikes require a significant acceleration in US growth”, according to Peter Rosenstreich from Swissquote. 

Wednesday will see the US Gross Domestic Product (GDP) as well as the Personal Core Expenditure (PCE), which is the favorite inflation indicator of the Federal Reserve while no major macreconomic data is expected from Switzerland. 

USD/CHF daily chart

The USD/CHF is trading above its 50-period simple moving average and has broken above yesterday’s high. Bulls are trying to close the market above the 0.95 handle. The next resistance is seen at 0.9570 last swing high which was the highest price seen in March. Bears will try to bring the market below Monday’s low at 0.9430 and the 50-period simple moving average; after which the 0.94 figure should also provide some support. The next support zone is seen at 0.9345 swing low.