- USD strength lifts the USD/CHF to its highest level of June.
- DXY stays near mid-94s in the NA session.
- Wall Street trades mixed on Thursday.
The USD/CHF pair spent the majority of the day moving sideways near 0.9850 and gathered momentum in the NA session to surge to its best level since May 29 at 0.9950. As of writing, the pair was trading at 0.9942, adding 0.88% on the day.
The USD valuation is driving the pair's price action on Thursday. The ECB earlier today announced that it would decrease the QE amount to €15 billion in the last three months of the year from the current €30 billion. However, president Draghi stated that they hadn't discussed a possible timing for a rate hike and added that the interest rates would remain at their current level at least until the end of the summer of 2019.
Markets reacted to today's ECB event by putting the shared currency under a heavy selling-pressure, which allowed the greenback to find demand and gather strength against its rivals. Moreover, today's data from the U.S. showed a higher-than-expected increase in retail sales in May to confirm Powell's statement of the economy being in a great shape.
The US Dollar Index seems to have gone into a consolidation phase near mid-94s, where it's up around 1% on the day.
Technical levels to consider
Following this recent rally, 1.0000 (parity/psychological level) becomes the next target ahead of 1.0055 (May 9 high) and 1.0095/1.0100 (May 10, 2017, high/psychological level). On the downside, supports are located at 0.9880 (20-DMA), 0.9790 (Jun. 7 low) and 0.9710 (200-DMA).
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 securities. 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 Forex 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.