USD/CHF continues to push higher toward 0.9100
- USD/CHF gained traction after finding support near 0.9000 on Tuesday.
- US Dollar Index struggles to climb above 92.00.
- Focus shifts to Manufacturing PMI data from US.
The USD/CHF pair tested 0.9000 for the second straight day on Tuesday and stage a decisive rebound after finding support. As of writing, the pair was up 0.42% on a daily basis at 0.9075.
Eyes on US PMI data
Despite the broad-based USD weakness, the risk-on market environment doesn't allow the CHF to find demand as a safe-haven. Heightened optimism for an effective coronavirus treatment continues to provide a boost to sentiment.
Reflecting the upbeat mood, the 10-year US Treasury bond yield is rising nearly 2% on the day and the S&P 500 futures are up 0.2%, suggesting that the index could hit a fresh record-high at the opening bell. Moreover, the Euro Stoxx 50 and Germany's DAX 30 indexes are gaining 0.25% and 0.4%, respectively.
On the other hand, the US Dollar Index (DXY), which touched its lowest level in more than two years at 91.75 earlier in the day, remains on the back foot and stays in the negative territory near 91.90.
Later in the session, the IHS Markit and the ISM both will release the Manufacturing PMI reports. These data's impact on the market sentiment, rather than the DXY, is likely to drive USD/CHF's movements in the second half of the day.
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.
