- USD/CHF stays relatively quiet after closing in the green on Tuesday.
- US Dollar Index is moving sideways near 93.00.
- Wall Street’s main indexes look to build on Tuesday’s gains.
After failing to close the day above 0.9200 on Monday, the USD/CHF pair gained traction and reached its highest level since July 8 at 0.9233 on Tuesday. With the market action turning subdued in the absence of high-tier data releases and fundamental drivers, the pair seems to have cone into a consolidation phase and was last seen trading flat at 0.9217.
DXY rally loses steam
The USD’s market valuation continues to impact USD/CHF’s movements in the first half of the week. The US Dollar Index (DXY) closed the fourth straight trading day in the positive territory on Tuesday and advanced to its highest level since early April at 93.19 on Wednesday. At the moment, the index is moving sideways around 93.00.
However, the sharp rebound witnessed in Wall Street’s main indexes limited the DXY’s upside. The S&P 500 Index rose 1.5% on Tuesday and made it difficult for the greenback to preserve its strength. Currently, S&P Futures are up 0.45%, suggesting that the bullish momentum in US stocks is likely to remain intact after the opening bell.
The US economic docket will not be offering any data in the remainder of the day and the risk perception is likely to continue to impact currency valuation.
Technical levels to watch for