- USD/CHF trades in a tight range above 0.9100 on Friday.
- Risk aversion helps CHF stay strong against its rivals.
- US Dollar Index consolidates above 93.00 ahead of US data.
The USD/CHF pair rose to a daily high of 0.9125 on Friday but struggled to preserve its bullish momentum. As of writing, the pair was virtually unchanged on a daily basis at 0.9100.
Focus shifts to US data
The risk-averse market environment seems to be helping the CHF stay resilient against its rivals as a safe-haven. Earlier in the day, the data published by the Eurostat showed that the euro area economy contracted by 15% on a yearly basis in the second quarter. Reflecting the flight to safety, major European equity indexes are losing between 1.3% and 1.65% on a daily basis.
Meanwhile, the US Dollar Index is staying relatively quiet above 93.00 as investors seem to be staying on the sidelines ahead of key macroeconomic data releases from the US.
In the early American session, the US Census Bureau will release July Retail Sales data. Investors expect the report to show an increase of 1.9% following June's impressive upsurge of 7.5%.
Previewing this data and its potential impact on the greenback, "the sell-off in the US dollar over the past month was predicated on the second wave Covid-19 impact on the economy," said FXStreet analyst Joseph Trevisani. "If retail sales do not in fact drop as anticipated, the currency will have another data point for a stronger USD.”
Other data from the US will include Industrial Production and the University of Michigan's Consumer Sentiment Survey.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD gains ground on hawkish RBA, Nonfarm Payrolls awaited
The Australian Dollar continues its winning streak for the third successive session on Friday. The hawkish sentiment surrounding the Reserve Bank of Australia bolsters the strength of the Aussie Dollar, consequently, underpinning the AUD/USD pair.
USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP
The Japanese Yen continues to draw support from speculated government intervention. The post-FOMC USD selling turns out to be another factor weighing on the USD/JPY pair. Investors now look forward to the crucial US NFP report for a fresh directional impetus.
Gold lacks firm near-term direction, remains stuck in a range ahead of US NFP
Gold price struggles to gain any meaningful traction amid mixed fundamental cues. The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support. Bets for a delayed Fed rate cut and a positive risk tone cap gains ahead of the US NFP.
Solana price pumps 7% as SOL-based POPCAT hits new ATH
Solana price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.