USD/CHF edges lower to 0.9500 ahead of Powell's testimony
|- USD/CHF struggles to build on Monday's modest gains.
- US Dollar Index stays in the positive territory above 97.50.
- FOMC Chairman Powell is scheduled to testify on the Fed's coronavirus response.
The USD/CHF rose on broad-based USD strength and the upbeat market mood on Monday and gained more than 30 pips. Although the pair pushed higher and touched its best level in a week at 0.9533, it lost its traction and returned to 0.9500, where it was down 0.13% on the day.
The only data published from the US showed on Tuesday showed that the S&P/Case-Shiller Home Price Index increased by 4% on a yearly basis in April but was largely ignored by the market participants. Later in the session, the ISM Chicago will release its PMI data for June.
Focus shifts to Powell's testimony
More importantly, FOMC Chairman Jerome Powell and Treasury Secretary Mnuchin will be testifying before the US House of Representatives Financial Services Committee on the fiscal and monetary response to the coronavirus crisis. Ahead of this event, the US Dollar Index is up 0.12% on the day at 97.60, keeping the bearish momentum intact.
Meanwhile, Wall Street's main indexes remain on track to open the day in the negative territory on Tuesday. If the market sentiment turns sour in the second half of the day, the USD could continue to gather strength and drag USD/CHF below 0.9500.
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.