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  • USD/CHF is edging higher toward 0.9000 on Wednesday.
  • SNB officials reaffirm loose policy stance will remain intact.
  • US Dollar Index is edging slightly higher ahead of US data.

The USD/CAD pair posted strong gains on Monday and fluctuated in a relatively tight range on Tuesday. With the Swiss National Bank (SNB) reiterating its commitment to keep the monetary policy loose, the pair started to edge higher on Wednesday and was last seen gaining 0.28% on the day at 0.8995.

Focus shifts to US data

Earlier in the week, SNB Chairman Thomas Jordan said that foreign exchange interventions are critical for the Swiss economy and added that they don’t see any alternatives to negative interest rates in the current environment.

On a similar sentiment, SNB policymaker Andrea Maechler argued that benefits of negative rates outweigh the disadvantages and noted that the CHF’s strength would put the Swiss economy in a much worse position if not for negative rates. 

In the meantime, the US Dollar Index (DXY) is inching higher ahead of key macroeconomic data releases from the US and helping the pair close in on 0.9000. At the moment, the DXY is up 0.1% on the day at 91.28.

The ADP Employment Change and the ISM Services PMI data will be featured in the US economic docket later in the session. Additionally, several FOMC policymakers are scheduled to deliver speeches.

Technical levels to watch for