- Real-GDP growth in the U.S. eases to 2% in Q1.
- Wall Street starts the day in the red.
- DXY struggles to stay above 95.
The USD/CHF pair came within a touching distance of the critical parity level earlier today but failed to preserve its momentum as the greenback started to lose its strength in the second half of the day. As of writing, the pair was trading at 0.9965, losing 0.07% on the day.
After staging a strong recovery and ending the day slightly above the 95 mark, the US Dollar Index extended its gains during the first half of the day before losing its traction. The data from the United States showed that the real GDP growth in its third estimate fell to 2% from 2.2% in the second estimate. On the other hand, weekly jobless claims rose by 9K to 227K for the week ending June 22 and missed the market expectation of 220K. At the moment, the DXY is down 0.15% on the day at 94.85.
Meanwhile, major equity indexes started the day on a weak note on Thursday with both the Dow Jones Industrial Average and the S&P 500 down around 0.2%, suggesting a weaker sentiment, which benefits the traditional safe-havens such as the CHF.
In addition to ongoing concerns over the U.S. trade policy, Amazon’s decision to buy the online pharmacy PillBack weighed heavily on the healthcare sector and drug manufacturers.
The next data from the U.S. will be the Kansas Fed Manufacturing Index. Furthermore, St. Louis Fed President James Bullard and the Atlanta Fed President Bostic will be delivering speeches.
Technical levels to consider
Only a daily close above the critical 1.0000 (parity/psychological level) could allow the pair to extend its gains toward 1.0055 (May 9 high) and 1.0100 (May. 11, 2017, high). On the downside, supports align at 0.9890 (Jun. 27 low), 0.9840 (Jun. 13 low) and 0.9790 (Jun. 7 low).
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