- USD/CHF is edging modestly higher after closing flat on Monday.
- US Dollar Index stays in the positive territory above 92.30.
- ISM and IHS Markit will release Services PMI reports for June.
The USD/CHF pair closed the first day of the week flat as trading conditions remained thin due to the Independence Day holiday in the US. With the greenback gathering strength on Tuesday, the pair climbed to a daily high of 0.9246 before going into consolidation. As of writing, the pair was up 0.1% on a daily basis at 0.9228.
Focus shifts to US Services PMI data
Amid a lack of fundamental drivers, the US Dollar Index, which closed unchanged a little above 92.20, is pushing higher on Tuesday and helping USD/CHF stay afloat in the positive territory. At the moment, the US Dollar Index is up 0.12% at 92.34.
Later in the session, the IHS Markit will release its final reading of June Services PMI and Composite PMI. More importantly, the ISM will publish the Services PMI report as well. The Prices Paid component of the ISM's report will be watched closely by market participants. In case this reading points to strengthening input price pressure in the service sector, the USD could continue to outperform its rivals in the second half of the day.
Previewing this data, "the ISM Services PMI and its all-important Prices Paid component are projected to drop and come after the dollar corrected to the downside. A small beat of estimates – especially in the inflation gauge – could reignite the dollar rally," said FXStreet analyst Yohay Elam.
ISM Services PMI Preview: Why the inflation component could trigger a dollar rebound.
Technical levels to watch for
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