USD/CHF reclaims 0.9000 as DXY rebounds ahead of Powell's testimony


  • USD/CHF rose above 0.9000 during the European session.
  • US Dollar Index stays in the green above 90.10.
  • Eyes on FOMC Chairman Powell's testimony and US Consumer Confidence data.

The USD/CHF pair closed the first day of the week virtually unchanged at 0.8960 and moved sideways during the Asian trading hours on Tuesday. However, renewed USD strength during the European session provided a boost to the pair, which was last seen gaining 0.5% on the day at 0.9005.

Earlier in the session, the data from Switzerland showed that the Producer Price Index (PPI) in January rose 0.3% on a monthly basis, compared to analysts' estimate of 0.1%, but failed to trigger a significant market reaction.

DXY hold above 90.00

Meanwhile, the US Dollar Index (DXY) reversed its direction after dropping to a fresh multi-week low below 90.00 and helped USD/CHF move into the positive territory. At the moment, the DXY is up 0.17% at 90.17. In the absence of significant fundamental drivers, the risk-averse market environment, as reflected by a 0.5% decline in the S&P 500 Futures, seems to be helping the USD find demand.

Later in the day, the Conference Board will release the February Consumer Confidence data. Additionally, FOMC Chairman Jerome Powell will deliver his remarks on the state of the economy at his semi-annual testimony before the Senate Banking Committee.

Investors will be paying close attention to Powell's remarks on the inflation outlook and surging Treasury bond yields. If the chairman adopts a dovish tone, the greenback is likely to remain on the back foot against its rivals.

Technical levels to watch for

USD/CHF

Overview
Today last price 0.9006
Today Daily Change 0.0040
Today Daily Change % 0.45
Today daily open 0.8966
 
Trends
Daily SMA20 0.8942
Daily SMA50 0.8895
Daily SMA100 0.8984
Daily SMA200 0.9148
 
Levels
Previous Daily High 0.9024
Previous Daily Low 0.8948
Previous Weekly High 0.8996
Previous Weekly Low 0.8871
Previous Monthly High 0.8926
Previous Monthly Low 0.8758
Daily Fibonacci 38.2% 0.8995
Daily Fibonacci 61.8% 0.8977
Daily Pivot Point S1 0.8935
Daily Pivot Point S2 0.8904
Daily Pivot Point S3 0.886
Daily Pivot Point R1 0.901
Daily Pivot Point R2 0.9055
Daily Pivot Point R3 0.9085

 

 

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.

Feed news

Stop losing your money! 
Learn to trade with us!

24/7 signals + Webinars    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1900 as dollar rebounds amid risk-aversion

EUR/USD is trading below 1.1900, retreating further from two-week highs of 1.1927 amid resurgent haven demand for the US dollar whilst the Treasury yields recover. Concerns about vaccines in Europe outweigh the Fed's dovish message.

EUR/USD News

GBP/USD struggles around 1.37 on dollar strength, Brexit and covid concerns

GBP/USD is trying to hold onto 1.37, trading near the March lows. The US dollar is rebounding the from dovish Fed-induced blow. Concerns about Britain's vaccine supplies and Brexit-related issues are weighing on sentiment.

GBP/USD News

XAU/USD trades as a function of yields, bounces at $1730 support

Spot gold (XAU/USD) prices have seen choppy price action this Friday, dropping from Asia Pacific levels in the upper-$1750s to lows around $1730, before recovering back to the mid-$1740s in recent trade. 

Gold News

Cardano’s Alonzo update might catalyze ADA price for 78% upswing

IOHK revealed Alonzo, the next protocol update for the Cardano blockchain. The upgrade will build on top of the recent releases like Mary, Allegra and so on to bring smart contract capabilities. ADA price falters but holds up as buyers eye a 78% bull run to record levels.

Read more

S&P 500: High high and away, it's the running of the bulls as PPI Freezes up

Up up and away as bulls push more record highs in equity markets. In the short term nothing, it appears, is clouding the picture. Or is it! The ten year yield reawakens with a fairly sharp rise back toward 1.7%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures