USD/CHF rises above 0.9950 as DXY rebounds

After spending the majority of the day in a tight range above the 0.99 mark on Tuesday, the USD/CHF pair gained traction and rose to a daily high of 0.9957. As of writing, the pair was trading a couple of pips below that level, adding 0.35% on a daily basis.

A modest recovery seen in the US Dollar Index, which measures the USD's value against a basket of six major currencies, seems to be the primary driver of the pair's recent advance. Following a drop to the 95.60 earlier in the day, the DXY rebounded above 95.80 in the NA session. However, in the absence of strong macroeconomic data that could support the buck, the index is unlikely to extend its rally ahead of tomorrow's FOMC announcements. 

Meanwhile, major equity indexes in the U.S. trade mixed on Tuesday amid the varying performances of sectors and fail to reveal the risk perception. 

Earlier today, the data from Switzerland showed that the trade surplus in November declined more than expected to weigh on the CHF. On the other hand, the CB reported that the Consumer Confidence Index in the U.S. fell to 120.2 in December from 126.6 in January. Regarding the fall in the consumer confidence, the CB in its publication noted that the government shutdown could have a temporary impact on the sentiment and explained a significant slowdown in the coming months was not expected.

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