USD/CHF making another attemp to parity level
After having a tough time holding above the critical 100 level, the US Dollar Index once again jumped above that level, pushing the USD/CHF towards the parity. At the moment, the pair is up 0.1% at 0.9975.
US macro data
The greenback got an additional boost from the upbeat data. The third estimate of real GDP growth in the United States improved to 2.1% from 1.9% in the second estimate. The Bureau of Economic Analysis in the United States, with this third estimate for the fourth quarter, the general picture of economic growth remains largely the same, noted in the official report.
Furthermore, although the initial jobless claims dropped less than expected, the less volatile four-week average came in at 254,250, recording a drop of 31,000 between the February and March survey periods, which suggest that the job market continued to improve.
Market sentiment
However, following yesterday's mixed session, the major US stock indices started the day under pressure, which could cap the gains seen is USD/CHF. Later in the NA session, markets will be keeping a close eye on statements from Dallas Fed's R.Kaplan (voter, hawkish) and San Francisco Fed's J.Williams (2018 voter, hawkish).
Technical outlook
With a break above the significant 1.0000 (psychological level), the upward momentum could carry the pair towards 1.0075 (100-DMA) and 1.0140 (horizontal level). On the downside, the first technical support is aligned at 0.9950 (200-DMA) followed by 0.99 (psychological level) and 0.9830 (Mar. 28 low).
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.
