USD/CHF stays in consolidation phase below 0.9200
- USD/CHF struggles to break above 0.9200 on Wednesday.
- US Dollar Index registers small daily gains above 93.50.
- Wall Street looks to open the day in the positive territory.
The USD/CHF pair closed the third straight day in the positive territory on Tuesday but seem to be having a difficult time preserving its bullish momentum on Wednesday. After failing to break above 92.00, the pair fluctuates in a tight consolidation channel and was last seen gaining 0.13% on the day at 0.9185.
Eyes on Brexit headlines
The broad-based USD strength helped the pair push higher earlier in the week. Although the US Dollar Index posts small daily gains near 93.60, the pair waits for the next significant catalyst. Later in the day, JOLTS Job Openings will be the released from the US, which is unlikely to have a noteworthy impact on the greenback's performance against its rivals.
Meanwhile, the market sentiment seems to have improved modestly on Wednesday. Major European equity indexes are up between 0.65% and 0.75% on the day and the S&P 500 futures are gaining 0.6%.
However, investors are focused on Brexit headlines and safe-haven flows could start to dominate the financial markets if the UK and the EU fail to come to terms on key issues. Another potential selloff in the GBP/USD pair is likely to provide a boost to the greenback. However, the CHF also could also find demand as a safe haven and cap USD/CHF's gains.
Technical levels to watch for
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.
