USD/CHF pushes lower toward 0.9200 as USD selloff picks up steam
- USD/CHF is trading in a tight range on Tuesday.
- US Dollar Index is falling for the second straight day.
- Major European equity indexes trade in the negative territory.
The USD/CHF pair rose to its highest level in more than two months at 0.9299 on Monday but reversed its direction to close the day with a 40-pip loss. During the early trading hours of the European session, the pair continued to edge lower and was last seen losing 0.28% on the day at 0.9219.
Eyes on US data, presidential debate
The selling pressure surrounding the greenback seems to be causing the pair to remain under bearish pressure. The US Dollar Index (DXY), which lost 0.33% on Monday, is currently down 0.25% at 94.04. In the absence of significant fundamental drivers and macroeconomic data releases, the DXY's slide on Tuesday could be seen as a technical correction of last week's impressive 1.7% gain.
Later in the day, Goods Trade Balance and the Conference Board's Consumer Confidence data will be featured in the US economic docket. Moreover, NY Federal Reserve President John Willams and Randal Quarles, Vice-Chair of the Federal Reserve, will be delivering speeches.
Additionally, the first presidential debate will take place at 0100 GMT on Wednesday. Although Wall Street will already be closed at the time of the debate, investors will be paying close attention to potential changes in market sentiment. A risk-off market environment in the near-term could help the DXY re-gain its traction.
Meanwhile, major European equity indexes are down between 0.25% and 0.4% on Tuesday, reflecting a cautious market mood.
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.
