USD/CHF falls toward 0.9660 as DXY seeks another correction
USD/CHF has broken through the 0.9678-0.9682 trading area as the DXY weakens. The persistence of the rate hike cycle is implied by the Fed's aim for price stability. Real Swiss Retail Sales are anticipated to rise to 3.3% from 1.2% previously reported.

The USD/CHF pair has broken below the limited consolidation zone between 0.9678 and 0.9682. Previously, the asset exhibited depletion signals after failing to surpass the crucial threshold of 0.9700. After a massive run, the US dollar index (DXY) has entered a mode of correction, and the main currency has lacked conviction in breaking over the critical 0.9700 barrier.
The DXY has retraced to about 108.68 at the open, as investors chose long liquidation following a sharp increase. Following the hawkish remarks made by Federal Reserve (Fed) head Jerome Powell at the Jackson Hole Economic Symposium, the asset maintained its upward trend. The market sentiment was scared by the Fed's preference for reducing the price growth index above growth prospects.
From the standpoint of households in the U.S. economy, a restrictive approach to interest rates to temper down inflation, which is eroding household incomes, is quite justifiable. The US inflation rate is soaring, and a single indication of tiredness is insufficient to allow Fed policymakers to lay back and relax.
On the Swiss franc front, investors are solely focused on the Real Retail Sales data, which is predicted to surge to 3.3% from 1.2% in the previous release. Investors are aware that pricing pressures in the Swiss economy are intensifying, therefore retail sales data is polluted with increased prices. Nonetheless, a decent improvement in economic data shows a rise in total demand.
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