USD/CHF set to reach 0.9000 mark amid firmer USD, risk-on sentiment
|- USD/CHF starts the fresh trading session on a quiet note.
- US dollar gains on upbeat economic data in a busy trading week.
- CHF remains grounded on its safe-haven appeal.
The USD/CHF pair is accumulating minor gains in the early Asian session on Monday. The pair is moving in a very narrow trade band consisting of 10-pips.
At the time of writing, USD/CHF trades at 0.8980, up 0.01% for the day.
The appreciative move in the US dollar kept USD/CHF higher in the previous session. Investors stay invested in the greenback ahead of the highly anticipated FOMC meeting this week.
The upbeat economic data continued to bolster the economic recovery and gained the prospects of sooner than expected Fed tapering. However, Fed officials have continued to downplay the rising pricing pressure as transitory.
The US dollar index gained on Friday after the US Michigan Consumer sentiment rose to 86.4 in June, beating the market sentiment of 84.
Meanwhile, the recent clash between the US and China sour the market sentiment that helped the US dollar to gain some traction. The Biden administration at the G7 summit questioned Beijing on covid-19, Taiwan, and human rights issues, which didn’t go well with China.
On the other hand, the Swiss franc maintains its safe-haven asset status, despite dismal Gross Domestic Product (GDP) data. However, the inflation rate rose to near a 2 year high at 0.6% in May, and the Unemployment Rate fell to 3.1%. The readings suggest robust economic recovery, which, in turn, supports the currency.
As for now, traders are waiting for the release of the Swiss Producer and Import Price in a light economic calendar.
USD/CHF additional levels
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