USD/CHF returns to 0.9850 area as USD weakens modestly after PPI data

After advancing to a daily high of 0.9870 earlier in the day, the USD/CHF pair erased a small part of its daily gains as the greenback met a modest selling pressure following the disappointing macroeconomic data releases from the U.S. As of writing, the pair was still up 0.37% on the day at 0.9850.

The data published by the U.S. Bureau of Labor Statistics on Tuesday revealed that the PPI stayed unchanged at 2.5% on a yearly basis in December. The core PPI, which excludes volatile food and energy prices, came in at 2.7% to fall short of the market expectation of 2.9%. Furthermore, the NY Fed's Empire State Manufacturing Index dropped to 3.9 in January from 10.9 in December. The US Dollar Index weakened slightly from the daily high of 95.93 to 95.80 area after the data.

Later in the session, markets will be paying close attention to Wall Street's performance following today's dismal earnings data from large financial institutions in the U.S. Meanwhile, the Brexit vote could cause the market volatility to rise and impact the pair's price action as well.

Technical levels to consider