USD/CHF moves sideways above 0.98, remains on track to close the day higher

• Small business optimism deteriorates slightly in the U.S.
• US Dollar Index goes into consolidation below 96.
• Wall Street looks to close higher for the third straight day.

The USD/CHF pair, which closed the previous four days in the negative territory, staged a modest recovery on Tuesday boosted by a broadly stronger greenback and an improved market sentiment. However, the pair lost its momentum around 0.9830 area and was last seen trading at 0.9815, adding 0.2% on a daily basis.

Earlier today, the data from Switzerland showed that the unemployment rate in December stayed unchanged at 2.4% as expected. Nonetheless, markets ignored the data and remained focused on the positive risk perception that was shown by strong gains recorded in major European indexes. Additionally, Wall Street preserved its bullish momentum and now remains on track to close the third straight day higher to reaffirm the risk-on mood.  

On the other hand, the US Dollar Index found support near 95.60 and reversed its course on Tuesday as the broad-based selling pressure surrounding major European currencies allowed the dollar to find demand. As investors are getting ready for the FOMC to release its December meeting minutes tomorrow, the US Dollar Index stays quiet a little below the 96 handle, rising 0.3%.  

Today’s data from the U.S. showed that the NFIB’s Small Business Optimism Index edged down to 104.4 in December from 104.8 in November. Assessing the data, “Optimism among small business owners continues to push record highs, but they need workers to generate more sales, provide services, and complete projects, said NFIB President and CEO Juanita D. Duggan.

 Key technical levels