USD/CHF finds support near 0.9800 as USD gathers strength ahead of data
|- US Dollar Index posts modest daily gains above 97.70.
- 10-year US Treasury bond yield pares early losses.
- Coming up: Chicago Fed National Activity Index and Durable Goods Orders from US.
After touching its lowest level since late August at 0.9768 last Thursday, the USD/CHF pair staged a decisive rebound on Friday fueled by the broad-based USD strength and closed the week virtually unchanged at 0.9828. Although the pair edged lower at the start of the new week, it reversed its course after testing the 0.9800 handle. As of writing, the pair was down 0.08% on the day at 0.9818.
Reports of Chinese President Xi accusing the United States of interfering with its internal affairs weighed on the market sentiment at the start of the week. The 10-year US Treasury bond yield turned south during the first half of the day and major European equity indexes painted a mixed picture.
However, with the market activity staying subdued ahead of the Christmas break, the risk sentiment turned neutral as well and allowed the 10-year US T-bond yield to erase its early losses.
Eyes on US data
Additionally, the US Dollar Index inched higher following a technical correction during the early European trading hours to help the pair retrace its drop. Ahead of Durable Good Orders, Chicago Fed National Activity Index and New Home Sales data from the US, the index is at its highest level in more than two weeks at 97.76, adding 0.08% on the day.
Previewing Durable Goods Orders report, “A rebound in auto orders following the end of the GM strike was probably more than offset by a plunge in the especially volatile aircraft component," said TD Securities analysts. "We expect little change in both ex-transportation and core capex orders. Surveys have generally been signaling stalling rather than dramatic weakening in underlying trends.”
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.