USD/CHF inches closer to 2019 highs above 1.0100 ahead of US data
- US Dollar Index clings to daily gains above 97.
- Risk-averse environment helps the DXY gain traction.
- Coming up: Retail sales, Markit Manufacturing & Services PMI data from the U.S.
The USD/CHF pair closed the day in the positive territory for the 9th time in the last ten days on Wednesday and preserved its bullish momentum today to advance to its highest level since early March at 1.0118. As of writing, the pair was trading a couple of pips below that level, adding 0.15% on a daily basis. If the pair surpasses the 1.0128 mark, where the November 2018 peak is located, it will reach its highest level in more than 2 years.
The broad-based USD strength today's seems to be fueling the pair's upsurge. Ahead of the IHS Markit's preliminary Services and Manufacturing PMI data and March retail sales figures, the US Dollar Index is adding 0.3% on the day at 97.31.
Previewing the retail sales report, "We expect the 0.7% m/m improvement in sales in the key control group to be supported by a normalization in tax refunds, rising real disposable income and a still humming labor market,” TD Securities analysts said.
The heavy selling pressure witnessed on the shared currency following the disappointing Manufacturing PMI releases fro Germany and the eurozone seems to be boosting the demand for the greenback, which is seen as a safer alternative.
Technical levels
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.
