Forex: USD/CHF still sideways, around 0.9100 at US session

Around the time of the NY opening, the USD/CHD rose back above the 0.9100 handle and reached a session high at 0.9116, but the US data brought the market back to the psychological level, where it still trades. Non-manufacturing PMI surprised the market with a rise from 56.5 to 57.3 in January, beating the consensus of a drop to 55.8.

Earlier, SNB's Board Member Zurbruegg wants to rise rates once growth recovers, but it might take a while until that happens. For now, the central bank is commited to low and stable inflation, which is being accomplished with no imminent pressures. In regard to the EUR/CHF peg, the increased balance sheet is "a concern".

"Near-term price action moves in a sideways / consolidative mode, as bounce of 0.9020 low lacks momentum for clearance of initial barrier at 0.9120, Fib 50% of 0.9225/0.9020 descend", wrote Windsor Brokers analyst Slobodan Drvenica. "Hourly structure is neutral, while prevailing negative tone on 4h chart, keeps the downside favored, unless 0.9120 and 0.9160, Fib 61.8% / 55 day EMA, are cleared", he added, pointing only to a break above the latter to avert immediate bearish scenario and open way for stronger recovery towards 0.9200.