USD/CHF slumps to fresh two-week lows near 0.9650 on broad USD weakness

• USD/CHF is testing the lower limit of its 10-day range.
• US Dollar Index is pushing lower toward 99 on Wednesday.
• FOMC meeting minutes will be looked upon for fresh impetus.

The USD/CAD pair closed the day virtually unchanged near 0.9700 on Tuesday and stayed quiet in that region before starting push lower during the European trading hours. As of writing, the pair was losing 0.58% on the day at 0.9656 and testing the lower limit of its 10-day range.

DXY extends its slide

The USD’s market valuation seems to remain as the primary driver of USD/CHF’s movements. The US Dollar Index (DXY), which erased last week’s gains on Monday, is staying on the back foot for the third straight day on Wednesday. With investors waiting for the key macroeconomic data releases from the US on Thursday, the greenback is struggling to find demand as a safe-haven. At the moment, the DXY is down 0.32% on the day at 99.26.

Although Wall Street’s main indexes failed to build on Monday’s impressive gains, the S&P 500 futures are gaining more than 1% on Wednesday to point out to a strong opening, which could further weigh on the buck.

Later in the day, the FOMC will publish the minutes of its April meeting. On Tuesday, FOMC Chairman Powell reiterated that the Fed was committed to using its full range of fools to continue to support the economy. However, negative interest rates are not on the table and investors will look for fresh clues on that matter in the FOMC’s statement.

Technical levels to watch for