USD/CHF pares daily losses as USD strengthens on data

Eren Sengezer FXStreet

The USD/CHF pair started a recovery move during the first trading hours of the American session as the PCE data came in above expectations and gained further momentum following the consumer confidence figures. Driven by the USD strength, the pair took back its daily losses and is now trading flat at 0.9940.

Investors largely ignored the weaker than expected real GDP growth from the U.S. for the first quarter of 2017 and reacted to the Personal Consumption Expenditures, which rose to 2.4% from 2% in Q1. Additionally, the Michigan Consumer Sentiment Index eased to 97 in April final reading, but the details of the report revealed that the consumer spending in 2017 is expected to grow at about a 2.5% pace.

US: Consumer sentiment eases to 97 in final (Apr) reading - UoM

After falling to 98.60 in the European session, the US Dollar Index, boosted by the data, rose to 98.96. At the moment, the index is at 98.90, still down 0.12% on the day.

Technical outlook

0.9985 (200-DMA) remains as the first important technical resistance for the pair ahead of 1.0000 (psychological level) and 1.0030 (100-DMA). On the downside, with a break below 0.9890 (daily low), the pair could aim for 0.9810 (Mar. 27 low) and 0.9735 (Nov. 8 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.

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