After an initial drop to 0.9830 at the opening of the NA session, the USD/CHF leaped above 0.99 amid broad based buying interest surrounding the greenback, finally filling the bearish weekly opening gap. As of writing, the pair was trading at 0.9930, recording a 0.75% advance on the day.
Risk-on
Wall Street seems to have shaken off the healthcare voting outcome as major US stock indexes are moving to levels seen before that event took place. Both the Dow Jones Industrial Average and S&P 500 are gaining more than 0.8% on Tuesday, allowing risk appetite to re-emerge and the investors to move away from the safe-haven CHF. Furthermore, the U.S.10-Year bond yield is up 1.8% at 2.42%, giving the greenback an additional boost. At the moment the US Dollar Index is up 0.55% at 99.60.
SNB Governing Board member Andrea Maechler's comments were largely ignored as she once again reiterated that the CHF was overvalued and the SNB would continue to intervene on a need-be basis. On the other hand, Dallas Fed's President Robert Kaplan didn't offer anything surprising as he argued that raising rates aggressively would bump the economy into a slowdown.
Technical outlook
With a break above 0.9945 (200-DMA), the pair could aim for 1.0000 (psychological level) and 1.0075 (100-DMA). On the downside, the first support might be seen at 0.99 (psychological level) followed by 0.9830 (daily low) and 0.9810 (Mar. 27 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 rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.