USD/CHF clings to modest daily gains near 0.9730
|- Broad USD strength helps USD/CHF push higher for second straight day.
- US Dollar Index erases pre-New Year losses, stays above 97.
- Focus stays on US-Iran conflict ahead of ISM PMI data and FOMC minutes.
The USD/CHF pair registered modest daily gains on Thursday and closed above the 0.9700 mark. With the greenback preserving its strength on Friday, the pair edged higher and was last seen trading at 0.9728, adding 0.15% on a daily basis.
CHF struggles to capitalize on risk-aversion
After the US killed Iranian General Qasem Soleimani in a drone attack at the Baghdad International Airport, escalating tensions in the Middle East and heightened risks over a possible retaliation by Iran weighs on the market sentiment on Friday. Although the CHF usually finds demand as a safe-haven when markets turn risk-averse, investors seem to be focusing on gold and the JPY.
Additionally, the USD's upbeat performance on Friday helps the pair stay afloat in the positive territory. The US Dollar Index, which rose 0.37% on Thursday, was last up 0.24% on the day at 97.04.
Earlier in the day, the data from Switzerland showed that the SVME Purchasing Managers' Index (PMI) improved to 50.2 in December from 48.8 in November to beat the market expectation of 49.1 but failed to help the CHF gain traction.
In the second half of the day, markets will pay close attention to fresh developments in the Middle East as well as the Institute for Supply Management's (ISM) PMI data from the US and the Federal Open Market Committee's December meeting minutes.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.