- USD/CHF edged modestly higher at the start of the week.
- US Dollar Index stays in the positive territory above 94.00.
- Focus shifts to ISM Manufacturing PMI data from the US.
The USD/CHF pair closed the previous five trading days in the positive territory and started the new week on a firm footing. After climbing toward 0.9200 and touching its highest level in nearly a month at 0.9188, however, the pair seems to have gone into a consolidation phase and was last seen gaining 0.13% on the day at 0.9179.
DXY holds above 94.00
The broad-based USD strength is allowing USD/CHF to stay in the positive territory on Monday. Despite the upbeat market mood, the selling pressure surrounding major European currencies helps the greenback preserve its strength. At the moment, the US Dollar Index (DXY) is up 0.23% at 94.10.
In the meantime, the S&P 500 futures are up 1.3% on the day, suggesting that risk flows are likely to continue to dominate the financial markets in the second half of the day. If wall Street’s main indexes post strong gains on Monday, the USD could have a tough time outperforming its major rivals.
Later in the day, the IHS Markit and the ISM will be both releasing their Manufacturing PMI reports for October. Unless there is a large divergence from market expectations, the market reaction is likely to remain muted ahead of the US presidential elections.
Technical levels to watch for
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