USD/CHF above 1.0000 pushing against 1.0065 two-year high
- The dollar breaks above parity and reaches a two-year high at 1.0065.
- Hopes of Fed tightening are boosting the US dollar.
- USD/CHF: Above 1.0074/98, higher targets are likely – Credit Suisse.
The US dollar has extended its rally against the Swiss Franc on Friday, breaking finally above the parity level, to test May highs at 1.0065. The pair is on track to close its fifth consecutive positive week after rushing 5% up from mid-September lows.
The greenback surges on Fed tightening hopes
The US consumer price data released on Thursday confirmed the resilient inflationary pressures on Thursday and boosted confidence in a fourth consecutive 0.75% Fed hike in November. This has increased the attractiveness of the US dollar for investors.
Furthermore, the growing concerns about a global recession on the back of a series of downbeat figures are also favoring the US dollar, seen as a safe haven in times of uncertainty.
USD/CHF: Breach of 1.0074/98 will open the path for higher targets – Credit Suisse
FX analysts at Credit Suisse point out a key resistance area at 1.0074/98: “Above the 1.0074/98 major barrier would be seen to clear the way for strength to the highs of 2019 at 1.0226/35.”