- USD/CHF rebounds after falling to its lowest level in two months below 0.9600.
- US Dollar Index erases majority of daily losses ahead of American session.
- ISM Manufacturing PMI in the US is expected to improve to 43 in May.
The USD/CAD pair spent the second half of the previous week under bearish pressure and extended its slide on Monday to touch its lowest level since late March at 0.9579. However, the pair staged a rebound ahead of the American session and was last seen trading at 0.9612, where it was virtually unchanged on a daily basis.
With most major European markets closed in observance of Whit Monday, the USD's performance remains as the sole driver of USD/CHF's movements.
Focus shifts to US data, Wall Street
Last week, the US Dollar Index (DXY) lost 1.5% amid the upbeat market mood on easing coronavirus-related lockdown measures. Although the index continued to edge lower at the start of the new week, it recovered the majority of early losses as investors seem to be adopting a cautious mood ahead of key macroeconomic data releases. At the moment, the S&P 500 futures are flat on the day.
Moreover, the unrest that has spread across major cities in the US with mass protests and rioting could weigh on the sentiment and help greenback continue to find demand as a safe-haven.
At 1400 GMT, the ISM will release its Manufacturing PMI data, which is expected to show that the contraction in the sector continued in May albeit at a softer pace. Ahead of this data, the DXY is down 0.1% on the day at 98.18.
Technical levels to watch for
|Today last price||0.9613|
|Today Daily Change||-0.0002|
|Today Daily Change %||-0.02|
|Today daily open||0.9615|
|Previous Daily High||0.965|
|Previous Daily Low||0.9602|
|Previous Weekly High||0.9736|
|Previous Weekly Low||0.9602|
|Previous Monthly High||0.9784|
|Previous Monthly Low||0.9589|
|Daily Fibonacci 38.2%||0.962|
|Daily Fibonacci 61.8%||0.9632|
|Daily Pivot Point S1||0.9594|
|Daily Pivot Point S2||0.9574|
|Daily Pivot Point S3||0.9545|
|Daily Pivot Point R1||0.9643|
|Daily Pivot Point R2||0.9671|
|Daily Pivot Point R3||0.9692|
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.