- US adds Switzerland into its list of currency manipulators.
- EUR/CHF slumps to its lowest level since April 2017.
- US Dollar Index stays in positive territory near 97.50 ahead of CPI data.
Following the United States Department of the Treasury’s decision to include Switzerland in its list of currency manipulators on Tuesday, the CHF gathered strength against its major rivals as investors saw this as a development that could force the Swiss National Bank to refrain from intervening in the FX markets.
The EUR/CHF fell sharply and touched its lowest level in more than 30 months at 1.0759 and the USD/CHF slumped below the 0.9700 mark. As of writing, the pair was trading at 0.9683, erasing 0.25% on the day after finding support near 0.9670.
USD strength keeps pair’s losses limited
On the other hand, the US Dollar Index is posting modest daily gains near 97.50 to help the pair pull away from its daily lows. In the early trading hours of the American session, the Consumer Price Index (CPI) data from the US will be looked upon for fresh impetus.
Markets expect the core CPI, which excludes volatile food and energy prices, to remain steady at 2.3% on a yearly basis in December.
Technical levels to watch for
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