USD/CHF rebounds modestly from daily lows, trades near 0.9930

• USD struggles to make a meaningful recovery.
• Major European equity indices trade mixed on Thursday.
• Coming up: Weekly jobless claims, Chicago PMI, and new home sales from the U.S.

The USD/CHF pair staged a sharp U-turn during the NA session on Wednesday and erased all of its daily gains as the Fed’s dovish tone weighed on the USD. With the greenback struggling to find demand in the aftermath of the FOMC meeting, the pair extended its slide and touched a session low of 0.9920 before recovering modestly. As of writing, the pair was down 0.1% on a daily basis at 0.9930.

On Thursday, the FOMC said that it would stay patient regarding further rate hikes and Chairman Powell recognized the slowdown in the economic activity amid geopolitical uncertainties. The greenback continued to weaken against its rivals following the initial market reaction with the US Dollar Index slumping to its lowest level since January 10 at 95.16. The DXY, at the moment, is losing 0.1% at 95.31.

Later in the session, weekly jobless claims, Chicago PMI, and new home sales data from the U.S. will be looked upon for fresh impetus. However, until tomorrow’s critical NFP report, the greenback’s recovery attempts are likely to be short-lived.

Meanwhile major equity indexes in Europe trade mixed with the Euro Stoxx 50 falling 0.4% and the UK’s FTSE adding 0.5%. However, despite this mixed tone, the S&P 500 is up nearly 1% on the day, pointing out to a strong start in Wall Street, which could help the pair continue to retrace its recent drop.

Technical levels to consider