USD/CHF retreats to 0.9100 area ahead of mid-tier US data
- USD/CHF is falling for the fifth straight day on Wednesday.
- US Dollar Index stays in the negative territory.
- Wall Street looks to open the day modestly higher.
The USD/CHF pair is edging lower on Wednesday as the greenback continues to have a tough time attracting investors. As of writing, the pair was down 0.1% on a daily basis at 0.9102.
DXY remains on the back foot
The broad-based USD weakness remains intact as the relatively upbeat market mood causes investors to focus on risk-sensitive assets. At the moment, the US Dollar Index (DXY) is losing 0.16% on the day at 92.28 and the S&P 500 Futures are up 0.25%, suggesting that Wall Street's main indexes could stage a rebound following Tuesday's retreat.
Later in the session, Housing Starts and Building Permits will be the only macroeconomic data releases featured in the US economic docket. However, market participants are likely to ignore these data and remain focused on markets' risk perception.
Earlier in the week, Vice-Chairman of the Swiss National Bank (SNB), Fritz Zurbruegg, reiterated that they want a weaker Swiss franc and that they remain committed to interventions in the forex market. If USD/CHF continues to push lower, investors could start backing away from the CHF and help USD/CHF limit its losses.
Technical levels to consider
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.
