USD/CHF stays near parity ahead of PCE inflation data
|- Risk-positive mood weighs on safe-havens on Monday.
- US Dollar Index sticks to modest gains around mid-96s.
- Coming up: US PCE price index, personal income/spending data.
After spending the majority of the Asian session in a tight range near 0.9980, the USD/CHF pair gained traction in the early European morning and rose above the critical parity mark. With markets getting ready for the September PCE price index data, the Federal Reserve preferred gauge of inflation, from the United States, the pair is moving sideways near 1.0000, adding 0.3% on a daily basis.
Although the first half of the day didn't offer any significant macroeconomic data releases, a strong rebound witnessed in European equity indexes suggested that the market sentiment has improved on Monday. At the moment, both Germany's DAX and the UK's FTSE are gaining 2%. In addition to the data from the U.S., Wall Street's performance could also act as a catalyst in the NA session.
Later in the session, Chicago Fed President Charles Evans, who earlier this month stated that he was comfortable with another rate hike in December, will be delivering a speech. Furthermore, Dallas Fed is going to publish the findings of its manufacturing business survey.
Technical levels to consider
The pair could encounter the first resistance at 1.0025 (Oct. 26 high) ahead of 1.0070 (Jul. 13 high) and 1.0100 (psychological level). Below 1.000 (parity), 0.9940 (20-DMA) could come as the initial support ahead of 0.9850 (Oct. 15 low).
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.