USD/CHF extends rally as US Dollar soars, eyes 1.0000
|- US Dollar up rises across the board supported by US data.
- USD/CHF up for the fourth time out of the last five days.
The USD/CHF pair move further to the upside during the American session amid a rally of the US Dollar. The greenback gained more strength after the release of US data that came in above expectations. Retail sales rose 0.5% in May and April’s data was revised higher. Industrial production also showed better-than-expected numbers. The negative number was consumer confidence for June that dropped from 100 to 97.9.
But not even the UoM Consumer report offset the previous numbers that eased speculations about a rate cut from the Federal Reserve as soon as July. Also US yields move to the upside, but then pulled back.
Versus main European currencies, the US Dollar reached weekly highs. The USD/CHF is trading at 0.9988 at the highest since June 3 and testing the 20-day moving average. The area around the parity level and the 20-DMA are a strong resistance level. A consolidation clearly above would signal more gains ahead and that a bottom is in place. If the pair fails to break higher, now the immediate strong support is located around 0.9960 and below at 0.9925.
The pair erased most of last week losses and is up 100 pips from the level it had last Friday. It is about to post the biggest weekly gain since mid-April.
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