USD/CHF extends sideways grind around 0.9050 after Swiss data
- USD/CHF is moving sideways following last week's decline.
- Annual CPI in Switzerland edged higher to 0.7% in July as expected.
- US Dollar Index stays relatively calm around 92.00 ahead of US data.
The USD/CHF pair closed in the negative territory for five straight days and lost more than 100 pips last week. On Monday, the pair stays in a consolidation phase following the data releases from Switzerland. As of writing, USD/CHF was flat on the day at 0.9053.
DXY holds near 92.00 as investors await PMI reports
The data from Switzerland showed on Monday that the Consumer Price Index (CPI) rose to 0.7% on a yearly basis in July from 0.6% in June. This reading matched the market expectation. On a negative note, annual Retail Sales grew by 0.1% in June, down from 2.8% expansion registered in May.
Later in the session, the IHS Markit will release the final Manufacturing PMI for July. More importantly, the ISM's Manufacturing PMI will be watched closely by market participants. Investors expect the headline PMI to show that the business activity in the manufacturing sector continued to expand at a robust pace. However, the Prices Paid Index, which touched a series high of 91.2 in June, will be the key component of the survey.
Ahead of these data, the US Dollar Index is staying relatively quiet around 92.00. Meanwhile, Wall Street's main indexes remain on track to open in the positive territory, suggesting that the greenback could have a tough time gathering strength if risk flows continue to dominate the markets.
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.
