USD/CHF advances beyond 0.9700, erases Monday's losses
- Major European stocks rebound following Monday's sharp drop.
- US Dollar Index clings to daily gains near 96.80.
- ISM Non-Manufacturing PMI and Factory Orders data from US coming up next.
The USD/CHF pair broke above the 0.9700 handle supported the broad-based USD strength. As of writing, the pair was up 0.35% on a daily basis at 0.9715.
After closing the first day of the week in the negative territory, the US Dollar Index started to recover its losses as the selling pressure surrounding the EUR helped the greenback find demand. As of writing, the index is up 0.18% on the day at 96.70.
During the American session on Tuesday, the Institue for Supply Management (ISM) will publish its Non-Manufacturing PMI. Furthermore, Factory Orders and Trade Balance data from the US will be released as well.
Risk appetite returns on Tuesday
In the meantime, improving risk sentiment seems to be making it difficult for the safe-haven CHF to show resilience against its rivals. Despite heightened concerns over Iran retaliating against US, major European equity indexes are registering decisive gains on Tuesday.
At the moment, Germany's DAX is up 1.15% on the day and the Euro Stoxx 50 is adding 0.68%. Moreover, the S&P 500 futures are up 0.15% to suggest that Wall Street is likely to open the day in the positive territory. On the other hand, in case risk-off flows start to dominate the markets, the pair could reverse its direction and slide below 0.9700.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
