USD/CHF consolidates gains around 0.9350 ahead of US data

• USD/CHF touched a fresh two-week high on Wednesday.
• US Dollar Index stays in the positive territory following Tuesday’s upsurge.
• Focus shifts to Durable Goods Orders and PMI data from US.

Fueled by the broad-based USD strength, the USD/CHF pair gained more than 100 pips on Tuesday and extended its rally to a fresh two-week high of 0.9371 on Wednesday. With the market action turning subdued ahead of key macroeconomic data releases from the US, the pair seems to have gone into a consolidation phase around 0.9350.

DXY advances to fresh multi-month highs

The US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, capitalized on safe-haven flows and touched its highest level since late November at 92.60 on Wednesday. Meanwhile, following a two-day correction, the 10-year US Treasury bond yield is staying flat on the day, helping the USD preserve its strength.

Later in the session, February Durable Goods Orders figures and the IHS Markit’s preliminary Manufacturing and Services PMI reports for March will be looked upon for fresh impetus.  

Meanwhile, the S&P 500 Futures are posting modest daily losses, suggesting that the DXY could have a difficult time pushing higher in the second half of the day if risk flows return to markets.  

On Thursday, the Swiss National Bank (SNB) will announce its Interest Rate Decision and release the Monetary Policy Statement. The SNB is widely expected to keep its policy rate unchanged at -0.75%. Additionally, the bank is likely to reiterate its commitment to intervene in foreign exchange markets to curb CHF gains.  

Technical levels to watch for