USD/CHF advances to 0.9970 area despite USD weakness

• Improved sentiment weighs on safe-havens on Friday.
• US Dollar Index stays in the red near 96.30.
• Wall Street is set to start the day in the positive territory.

After finding interim support near 0.9930, the USD/CHF pair closed the previous day with modest gains on continued to push higher as the strong performance of major European equity indices allowed investors to stay away from traditional safe-havens such as the CHF. As of writing, the pair was up 0.08% on the day at 0.9970.

At the moment, the Euro Stoxx 50 is up 1.08% on the day while Germany’s DAX is adding an impressive 1.61%. Report of the Northern Irish Democratic Unionist Party (DUP) planning to support UK PM May’s ‘Plan B’ Brexit deal helped the market sentiment turn improve in the day. Furthermore, the S&P 500 Futures is rising 0.8% on the day to suggest that Wall Street is likely to open the day sharply higher, which could help the pair gather momentum in the absence of macroeconomic data releases from the U.S.

On the other hand, the US Dollar Index is losing 0.25% on a daily basis to point to a broad-based USD weakness. However, with the 10-year T-bond yield rising nearly 1% on the day, we could see the greenback start retracing its daily drop in the second half of the day, similar to what we have seen in the last couple of days.  

Technical levels to consider