- USD/CHF broke above its daily consolidation channel in early American session.
- US Dollar Index is edging higher toward 97.00.
- Wall Street’s main indexes look to open in negative territory.
After spending the majority of the day moving sideways in a tight range near 0.9450, the USD/CHF pair turned north in the last hour and advanced to a daily high of 0.9474. As of writing, the pair was up 0.3% on the day at 0.9472.
Risk aversion boosts USD
In the absence of significant macroeconomic data releases on Wednesday, the risk-off market environment is helping the greenback gather strength against its peers. The US Dollar Index, which tracks the USD’s performance against a basket of six major currencies, is up 0.27% on the day at 96.94.
The only data featured in the US economic docket will be the Housing Price Index and is likely to receive a meaningful market reaction.
More importantly, investors will be keeping a close eye on Wall Street’s performance. At the moment, the S&P 500 futures are down 0.7% on the day. If major equity indexes fall sharply on Wednesday, the USD could continue fined demand as a safe-haven.
Meanwhile, the Swiss National Bank (SNB) is scheduled to publish its Quarterly Bulletin for the second quarter at the top of the hour as well.
Technical levels to watch for
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