As the DXY looks for a correction, the USD/CHF is falling toward 0.9660

Breaking below the restricted consolidation zone between 0.9678 and 0.9682, the USD/CHF pair is heading lower. Depletion warnings were seen in the asset before, when it failed to rise beyond the key level of 0.9700. The US dollar index (DXY) has entered a corrective phase following a prolonged upswing, and the major currency has lacked the necessary conviction to rise over the key 0.9700 level.

After a rapid gain, investors opted to liquidate their long positions, sending the DXY down to around 108.68 at the open. In spite of Federal Reserve (Fed) chairman Jerome Powell's harsh comments at the Jackson Hole Economic Symposium, the asset continued its upward trend. The market was shaken by news that the Fed would prioritize slowing inflation over boosting economic growth.

A conservative approach to interest rates to moderate down inflation, which is eroding household earnings in the U.S. economy, is entirely acceptable from the perspective of households. Inflation in the United States is skyrocketing, so Fed policymakers can't afford to rest easy even if they show signs of fatigue.

Real Retail Sales is the only piece of data that matters to investors in the Swiss franc right now, and experts estimate that it will rise to 3.3% from 1.2%. Investors are aware of rising price pressures in the Swiss economy, which has a negative impact on retail sales figures. Despite this, there has been a noticeable increase in overall demand, which is reflected in the latest economic figures.