- Greenback gains traction in the NA session.
- Fed’s Evans says economy is looking stronger than it did in December.
- NY Fed’s Empire State Manufacturing Index rises more than expected.
After closing the previous week above the critical parity mark, the USD/CHF pair continued to edge higher on Monday and was last seen trading at its highest level since March 15 at 1.0047, adding 0.23% on a daily basis.
Earlier today, the data from Switzerland showed that the Producer Price Index in March rose 0.3% following February’s 0.2% increase but was largely ignored by the participants. In the meantime, heightened hopes of the U.S.-China trade conflict soon coming to an end and the announcement of the EU nations agreeing to kick off trade negotiations with the U.S. helped market sentiment remain positive and weighed on safe-havens such as the CHF on Monday.
On the other hand, Chicago Fed President Evans today said that the U.S. economy was looking stronger than it did back in September to provide a small boost to the greenback. On the policy outlook, Evans said that he’d like to see inflation rise before going for another rate hike.
Moreover, the Federal Reserve Bank of New York in its Empire State Manufacturing Survey showed that the business activity expanded at a more robust pace than expected with the headline Manufacturing Index improving to 10.1 in April from 3.7 in March and supported the buck’s recovery. At the moment, the US Dollar Index is up 0.12% on the day at 96.96.
Technical levels to consider