USD/CHF stays quiet below 1.0100 ahead of US data

• US Dollar Index clings to daily gains above 97.
• European stocks post modest gains.
• Coming up: Retail sales and PPI data from the U.S.

The USD/CHF pair closed the first day three days of the week in the positive territory and met resistance around 1.0100 handle on Thursday. Ahead of the macroeconomic data releases from the U.S. the pair is trading at 1.0090, staying virtually unchanged on a daily basis.

The U.S. Census Bureau today will publish the retail sales data for December, which is expected to show a monthly increase of 0.2%. Moreover, the Bureau of Labor Statistics will release the weekly jobless claims and Producer Price Index (PPI) data. At the moment, the US Dollar Index is staying near the 2-month high that it set at 97.30 earlier today. Meanwhile, the 10-year T-bond yield is looking to snap its 3-day winning streak, suggesting that the DXY could have a difficult time pushing higher even if the data surprises to the upside.

On the other hand, markets will be paying close attention to Wall Street’s performance  following yesterday’s impressive rally. The S&P 500 Futures is posting small gains ahead of the opening bell, pointing out to a slightly positive start to the day. The risk perception in the second half of the day could impact the demand for the safe-haven CHF.

Technical levels to consider

The pair could face the first technical resistance at 1.0100 (Feb. 10 high) ahead of 1.0130 (Nov. 13, 2018, high) and 1.0200 (psychological level). On the downside, supports are located at 1.0075 (daily low), 1.0040 (Feb. 12 low) and 1.0000 (psychological level/parity).