- USD/CHF gained traction after closing in the red on Tuesday.
- US Dollar Index tests 90.00 ahead of FOMC Minutes.
- Global equity indexes are suffering heavy losses on Wednesday.
The USD/CHF pair dropped to its lowest level since late February at 0.8960 on Tuesday but reversed its direction on Wednesday. As of writing, the pair was up 0.48% on a daily basis at 0.9020.
DXY edges higher following Tuesday’s slump
The USD’s market valuation continues to drive USD/CHF’s movements. On Tuesday, the sharp drop witnessed in the US Dollar Index (DXY) allowed USD/CHF to push lower. In the absence of significant macroeconomic data releases, the risk-positive market environment weighed heavily on the greenback.
With the market mood souring on Wednesday, the DXY is rising 0.25% at 90.00. At the moment, the S&P Futures and the Nasdaq Futures are down 0.9% and 1.25%, respectively, suggesting that the USD is likely to preserve its strength in the second half of the day supported by safe-haven flows.
Later in the day, the FOMC will release the minutes of its April meeting. Market participants will look for clues regarding the policymakers’ view of inflation expectations. In the meantime, the 10-year US Treasury bond yield is rising 1.77% on the day at 1.666%, providing an additional boost to the USD. In the late American session, the US T-bond yields’ performance could impact the greenback’s performance against its rivals.
Technical levels to watch for
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