- US Dollar Index struggles to hold above 100 on Monday.
- Global equity indexes start new week on back foot.
- Chicago Fed’s National Activity Index falls sharply in March.
The USD/CHF pair registered small gains last week and seems to be having a tough time setting its next short-term direction on Monday. As of writing, the pair was virtually unchanged on a daily basis at 0.9665.
Markets turn sour on Monday
In the absence of significant macroeconomic data releases and fundamental developments at the start of the week, risk perception remains as the sole driver of financial markets. Despite heightened hopes of major economies easing coronavirus-related lockdown measures to reopen the economy, plunging oil prices weigh on global equity indexes on Monday.
Although the CHF usually capitalizes on risk aversion as a safe-haven, the USD preserves its strength against its peers to keep the pair’s losses limited. The US Dollar Index, which advanced beyond the 100 mark earlier in the day, was last seen adding 0.1% on the day at 99.80.
Earlier in the day, the Federal Reserve Bank of Chicago announced that its National Activity Index in March plummeted to -4.19 in March from 0.06 in February to reflect the contraction in the economic activity.
On Tuesday, Trade Balance data from Switzerland and Existing Home Sales data from the US will be looked upon for fresh impetus.
Technical levels to watch for
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