USD/CHF slumps to 1.0070 area as DXY retreats to 97

• US Dollar Index loses momentum in the NA session.
• Soft inflation data weigh on the greenback.
• Wall Street pares early losses.

The USD/CHF pair failed to hold above the 1.0100 mark on Tuesday and turned south in the second half of the day to erase  Monday’s gains. As of writing, the pair was trading at 1.0072, losing 0.3% on a daily basis.

Deflating hopes of British Prime Minister Theresa May’s deal passing the Parliament on Tuesday weighed on the market sentiment during the European trading hours and allowed safe-havens to gather strength against their rivals.  

On the other hand, the greenback lost its traction after the data from the U.S. showed that the inflation, as measured by the CPI, rose 0.2% on a monthly basis in February and brought the annual rate down to 1.5%, below the market expectation of 1.6%. The core CPI, which strips food and energy prices, edged down to 2.1% annually from 2.2%. Furthermore, the NFIB Business Optimism Index came in at 101.7 to fall short of analysts’ estimate of 102.

Pressured by the disappointing data, the US Dollar Index eased from the session high that it set near 97.30 and was last seen flat on the day near 97.  

Later in the day, markets will be paying close attention to the meaningful vote in the UK as it’s likely to impact the risk perception.  

Technical levels to consider