- USD/CHF registers modest daily gains above 0.9100 on Thursday.
- US Dollar Index extended its rebound beyond 93.00.
- Investors wait for Initial Jobless Claims and Services PMI data from US.
The USD/CHF pair closed in the positive territory a little above 0.9100 on Wednesday and has gone into a consolidation phase on Thursday. As of writing, the pair was up 0.15% on the day at 0.9120.
DXY climbs above 93.00
After dropping to its lowest level in more than two years below 92.00 on Tuesday, the US Dollar Index (DXY) staged a decisive recovery and registered strong gains on Wednesday. The upbeat macroeconomic data releases from the US helped the greenback find demand against its rivals.
On the other hand, Vice-Chairman of the Swiss National Bank (SNB), Fritz Zurbruegg, reiterated late on Wednesday that negative rates and currency interventions are fundamental for the Swiss economy and made it difficult for the CHF to show resilience.
Later in the day, the US Department of Labor will publish its weekly Initial Jobless Claims report. Other data releases featured in the US economic docket will include the IHS Markit’s and the ISM’s Services PMI, Trade Balance and Unit Labor Costs. Ahead of these data, the US Dollar Index is up 0.4% on the day at 93.02.
Meanwhile, the upbeat market mood, as reflected by major European equity indexes’ strong daily gains, is putting additional weight on the safe-haven CHF.
Technical levels to watch for
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