USD/CHF remains depressed below 0.8990 ahead of key US data
- USD/CHF remains muted in the Asian session.
- US dollar softens on Fed dovish stance.
- US PMI data is closely watched.
The USD/CHF pair traded quietly with modest losses on Tuesday. The pair recovered from the multi-month low near 0.8930 to touch the high of 0.9029. However, it failed to carry the previous gains onto the fresh trading week.
At the time of writing, USD/CHF trades at 0.8985, down 0.05% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against six major currencies, stays below 90, down 0.19% for the day.
Market participants remained less enthusiastic for the US dollar as speculation about tapering lost momentum and the US economic outperformance seems already priced in.
Fed’s dovish stance poured cold water on the theory of the economy overheating due to rising pricing pressure. Investors dumped the greenback and moved to other riskier assets.
On the other hand, the Swiss Franc benefits from its safe-haven appeal. The Swiss National Bank Chairman Thomas Jordan said that the country’s economy is not overheating and its monetary policy is “appropriate”. The National bank expects moderate inflation as the central bank maintains cautious optimism for global economic recovery.
As for now, traders turn their attention to the release of Swiss Retail Sales, Gross Domestic Product (GDP). In the US economic docket, PMI data and Dallas Fed manufacturing Index would be closely watched.
USD/CHF Additional Levels