- US Dollar Index continues to float above 95.
- PPI data and Fed speaks will be watched in the NA session.
- European equity indices record modest gains.
The USD/CHF pair is moving sideways in a narrow band on Wednesday amid a lack of significant macroeconomic data releases that could impact the FX price action. As of writing, the pair was trading at 0.9740, up 0.15% on the day.
Although the US Dollar Index is recording modest gains on the day to reflect a relatively stronger greenback, the pair failed to gain traction as investors refrain from making large bets while waiting for the critical central bank meetings and developments on the U.S. – China trade conflict. After closing the previous day with losses, major European equity indices are recording modest gains on the day with German DAX and the UK’s FTSE adding 0.22% and 0.2% respectively.
Later in the session, PPI data from the U.S. will be looked upon for fresh impetus. Also in the session, FOMC members Bullard and Brainard will be delivering speeches. Furthermore, the Fed will publish its highly-anticipated Beige Book, a survey which paints a picture of the overall economic condition in the United States. Ahead of the data, the DXY is up 0.15% on the day at 95.20.
Technical levels to consider
The initial resistance for the pair aligns at 0.9800 (psychological level) ahead of 0.9870 (50-DMA) and 0.9900 (psychological level/100-DMA). On the downside, supports are located at 0.9730 (200-DMA), 0.9685 (Monday low) and 0.9640 (Sep. 7 low).
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