- USD/CHF struggles to determine its next short-term direction.
- Selling pressure surrounding the USD strengthens on Tuesday.
- FOMC is expected to keep the policy rate unchanged tomorrow.
For the fourth straight trading day on Monday, the USD/CHF pair struggled to make a decisive move in either direction and fluctuated in its tight consolidation channel near the 1.02 mark. Although the pair slumped to a weekly low of 1.0175 earlier in the day, it didn’t have a difficult time erasing its losses and was last virtually unchanged on the day at 1.0195.
According to today’s only data release from Switzerland, the KOF Leading Indicator to 96.2 in April from 97.1 in March and fell short of the market expectation of 96.9. Despite this disappointing data, however, the pair pushed lower during the European trading hours with the upbeat data from the euro area forcing the demand to shift away from the greenback.
After posting its highest weekly close of 2019 a little above the 98 mark last Friday, the US Dollar Index lost 0.2% on a daily basis on Monday and edged lower today to touch its lowest level in a week at 97.49. At the moment, the index is down 0.35% at 97.52.
The next significant catalyst for the greenback will be tomorrow’s FOMC announcements. Although markets expect the Fed to keep its policy rate and the near-term outlook unchanged markets will be looking for a change in the tone of the monetary policy statement following last Friday’s strong GDP data.
Technical levels to consider
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