- US Dollar Index loses traction after rising for two straight days.
- Wall Street looks to open in positive territory on Wednesday.
- Coming on Thursday: ZEW Survey Expectations Index from Switzerland.
The USD/CHF pair spent the first half of the day moving sideways near the 0.97 handle before coming under modest bearish pressure. As of writing, the pair was down 0.15 on the day at 0.9680.
USD starts erasing its gains
The selling pressure surrounding the greenback on Wednesday seems to be weighing on the pair. The improving risk sentiment as reflected by rising European equity indexes keeps the USD’s gains against its rivals in check. The US Dollar Index, which rose to its higher level in more than a week at 100.50 on Tuesday, is down 0.2% on the day at 100.
Boosted by the upbeat market mood, US stock index futures are up more than 1% to show that Wall Street is likely to open the day in the positive territory. However, the lack of significant positive developments surrounding the coronavirus outbreak suggests that the sentiment is likely to remain fragile in the current environment. Hence, a negative shift in risk perception could help the greenback start gathering strength against its peers.
Later in the day, the Housing Price Index will be the only data featured in the US economic docket. On Thursday, the ZEW Survey’s Expectations Index from Switzerland will be looked upon for fresh impetus.
Technical levels to watch for
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