USD/CHF clings to small gains above 0.99 on broad USD strength
- US Dollar Index rises toward 98.50 handle on Monday.
- Sour market sentiment helps CHF limit its losses vs the USD.
- NY Fed's Empire State Manufacturing Index misses analysts' estimate.
After posting a modest 30-pip gain last week, the USD/CHF pair is inching higher on Monday and was last seen trading at 0.9914, adding 0.12% on a daily basis.
Although the fact that the market mood turned sour at the start of the week to ramp up the demand for traditional safe-havens following reports of drone attacks on Saudi Arabia's oil facilities, the pair struggled to gain traction. The heavy selling pressure surrounding the EUR and the GBP helped the Greenback outperform its rivals on Monday.
USD starts the week on a strong note
The US Dollar Index (DXY), which closed the previous week in the negative territory, climbed higher toward mid-98s today to reflect the broad USD strength. Today's only data from the US revealed that the manufacturing activity in the NY area lost its momentum in September with the headline General Business Conditions Index of the NY Fed's Empire State Manufacturing Survey slumping to 2 and missing the experts' forecast of 4. Nevertheless, the DXY is still up 0.62% on the day at 98.47 to keep the bullish pressure on the pair intact.
In the second half of the day, markets will be paying close attention to Wall Street's reaction to heightened tensions in the Middle East. On Tuesday, SECO Economic Forecasts from Switzerland will be looked upon for fresh impetus.
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.
