- US Dollar Index steadies near 94.40.
- Wall Street is closed due to Independence Day holiday.
- European indices look to end with modest losses.
After easing toward the 0.99 handle in the late Asian session, the USD/CHF pair recovered its losses as the greenback started gaining traction. As of writing, the pair was virtually unchanged on the day at 0.9924.
Amid a lack of fresh fundamental drivers, the US Dollar Index is showing technical fluctuations below the mid-94s. With an empty economic calendar in the second half of the day, the index is set to extend its sideways action toward the end of the day. At the moment, the DXY is up 0.07% on the day at 94.39.
Meanwhile, major European indices on Wednesday record modest losses, pointing to a weak appetite for risk, which allows the safe-haven CHF to show resilience against its rivals. Germany’s DAX and the UK’s FTSE 100 indexes are down 0.3% and 0.15% respectively and are looking to close the session in the red.
On Thursday, the Swiss Federal Statistical Office is going to publish its CPI data for June. On a yearly basis, the inflation is expected to edge higher to 1.1% from 1% in May. Later in the day, the FOMC is going to publish the minutes of its June 13 meeting. Furthermore, the APD private employment report and Markit Service Sector PMI will be looked upon for fresh impetus.
Technical outlook
The pair could encounter the first technical resistance at 0.9930 (50-DMA) ahead of 1.0000 (psychological level/parity), and 1.0055 (May 9 low). On the downside, supports could be seen at 0.9905 (daily low), 0.9855 (Jun. 25 low), and 0.9790 (Jun. 7 high).
Share
