- US Dollar Index drops to 95 area on Monday.
- Coming up: Retail sales and NY Empire State Manufacturing data from the U.S.
The broad-based greenback weakness witnessed in the first half of the day on Monday dragged the USD/CHF pair to a daily low at 0.9849. With the USD staging a modest recovery in the last hour, the pair erased some of its losses and was last seen trading at 0.9867, losing 0.63% on a daily basis.
Ahead of the retail sales, which is expected to increase by 0.5% on a monthly basis in September, and the NY Empire State Manufacturing Index from the U.S., the US Dollar Index failed to build on its recovery that started on Friday. After testing the 95 mark, the index advanced to 95.10, where it was still losing 0.15% on a daily basis.
In addition to the USD’s dismal performance, a relatively weak market sentiment seems to be ramping up the demand for safe-haven currencies such as the JPY and the CHF. If Wall Street reverses its course following Friday’s strong rebound, we could see the pair come under a renewed bearish pressure in the second half of the day. Meanwhile, markets are eagerly waiting for British Prime Minister Theresa May’s statement on Brexit negotiations ahead of Wednesday’ summit, which could heighten concerns over a no-deal Brexit, later in the session.
Technical levels to consider
The initial support for the pair aligns at 0.9850 (daily low) ahead of 0.9790 (200-DMA) and 0.9760 (50-DMA). On the upside, resistances are located at 0.9900/10 (psychological level/daily high), 0.9955 (Oct. 9 high) and 1.0000 (psychological level/parity).
Share
