- USD/CHF pushes higher after closing in the green on Tuesday.
- USD preserves its strength ahead of FOMC Minutes and US data.
- Risk aversion helps US Dollar Index close in on 91.00.
After dropping to its lowest level in nearly three weeks at 0.8870, the USD/CHF pair staged a decisive rebound in the second half of the day on Tuesday and closed in the positive territory. With the broad-based USD strength remaining intact on Wednesday, the pair climbed to fresh weekly highs and was last seen gaining 0.3% on the day at 0.8950.
Focus shifts to US data, FOMC Minutes
The US Dollar Index, which made a sharp U-turn after falling toward 90.00 on Tuesday, is currently up 0.35% on the day at 90.82. The risk-averse market environment, as reflected by the poor performance of major European equity indexes, is providing a boost to the USD on Wednesday.
Later in the day, the US Census Bureau will release the January Retail Sales report. Previewing this data, “retail sales probably rebounded in January after falling by 2.1% in the previous three months,” said TD Securities analysts.
Other data releases from the US will include Industrial Production and the Producer Price Index (PPI). More importantly, the FOMC will publish the minutes of its February meeting. Nevertheless, investors don’t expect the statement to reveal any fresh insights regarding the policy outlook and the USD’s market valuation is likely to continue to impact USD/CHF’s movements.
Technical levels to watch for
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