USD/CHF rebounds above 0.9600 as USD preserves strength
|- US Dollar Index is inching closer to critical 100 mark.
- Major European equity indexes continue to suffer heavy losses.
- USD funding stress dominates FX market action on Wednesday.
The USD/CHF pair gained more than 150 pips on Tuesday and staged a technical correction during the European morning on Wednesday. After retreating to 0.9570 area, the pair gained traction in the last hour and turned flat on the day above the 0.9600 mark.
US Dollar Index pushes higher toward 100
The broad-based USD strength amid concerns over USD funding stress continues to dominate the action in the foreign exchange markets. Although the US Dollar Index seemed like it has calmed down following the Federal Reserve's additional measures to inject liquidity into the markets on Tuesday, it turned north, once again, and is now at its highest level since April 2017 at 99.95.
In the meantime, major European equity indexes are all erasing more than 5% to reflect the risk-averse environment, which helps the CHF show some resilience for the time being.
In the second half of the day, Building Permits and Housing Starts will be featured in the US economic docket. However, investors are likely to remain focused on the USD's performance and markets' risk perception.
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.