- USD/CHF is consolidating Tuesday’s gains, stays calm around 0.8900.
- Broad USD weakness limits USD/CHF’s downside on Wednesday.
- Investors await US data and SNB’s Quarterly Bulletin.
The USD/CHF registered its highest daily close in two weeks at 0.8896 on Tuesday and went into a consolidation phase as investors wait for the macroeconomic data releases from the US ahead of the Christmas holiday. As of writing, the pair was moving sideways near 0.8900.
Attention turns to US data
The broad-based USD strength helped USD/CHF push higher earlier in the week. The lack of progress in the UK-EU trade negotiations and renewed coronavirus fears helped the greenback find demand as a safe-haven. After gaining 0.7% on Tuesday, however, the US Dollar Index lost its traction and was last seen losing 0.27% at 90.40.
Modest gains witnessed in major European equity indices and US stock index futures point to a relatively upbeat market mood on Wednesday, which forces the USD to remain on the back foot.
In the early American session, Initial Jobless Claims, Durable Goods Orders, Personal Spending and Personal Income data will be featured in the US economic docket. Additionally, the University of Michigan’s Consumer Sentiment Index will be looked upon for fresh impetus.
On the other hand, the Swiss National Bank (SNB) will publish its Quarterly Bulleting for the fourth quarter.
Technical levels to watch for
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