USD/CHF climbs above 0.9470 on broad USD strength
- USD/CHF broke above its daily consolidation channel in early American session.
- US Dollar Index is edging higher toward 97.00.
- Wall Street's main indexes look to open in negative territory.
After spending the majority of the day moving sideways in a tight range near 0.9450, the USD/CHF pair turned north in the last hour and advanced to a daily high of 0.9474. As of writing, the pair was up 0.3% on the day at 0.9472.
Risk aversion boosts USD
In the absence of significant macroeconomic data releases on Wednesday, the risk-off market environment is helping the greenback gather strength against its peers. The US Dollar Index, which tracks the USD's performance against a basket of six major currencies, is up 0.27% on the day at 96.94.
The only data featured in the US economic docket will be the Housing Price Index and is likely to receive a meaningful market reaction.
More importantly, investors will be keeping a close eye on Wall Street's performance. At the moment, the S&P 500 futures are down 0.7% on the day. If major equity indexes fall sharply on Wednesday, the USD could continue fined demand as a safe-haven.
Meanwhile, the Swiss National Bank (SNB) is scheduled to publish its Quarterly Bulletin for the second quarter at the top of the hour as well.
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.
