- US Dollar Index rises above 97 for the first time since late June.
- Wall Street looks to end the day modestly higher.
After taking a break above the parity mark in the early NA session, the USD/CHF resumed its rally and touched its highest level since July 13 at 1.0052 as the greenback continued to gather strength. As of writing, the pair was trading at 1.0050, adding 0.3% on the day.
The strong macroeconomic data releases from the United States and rising Treasury bond yields fueled the US Dollar Index's upsurge on Tuesday. Additionally, the selling pressure surrounding major European currencies such as the euro and the British pound amid ongoing political concerns force investors to look for better alternatives.
Earlier today, the data from the United States showed that the S&P/Case-Shiller Home Price Index rose 5.5% on a yearly basis in August and the Conference Board's Consumer Confidence Index rose to 137.9 in October from 135.3 in September. The US Dollar Index, which failed to break above the 97 mark back in August, advanced to its highest level in more than four months at 97.02.
In the meantime, major equity indexes in the U.S. are clinging to their gains on Tuesday with the Dow Jones Industrial Average looking to close the session around 1% higher and making it difficult for safe-havens like the CHF find demand and stage a recovery.
Technical levels to consider
The pair could face the next resistance at 1.0070 (Jul. 13 high - 2018 high) ahead of 1.0100 (psychological level) and 1.0170 (Mar. 7, 2017, high). On the downside, supports are located at 1.000 (parity), 0.9940 (20-DMA) and 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.