USD/CHF stays near 0.9300, struggles to find direction on Monday
- USD/CHF moves up and down in a narrow band on Monday.
- US Dollar Index stays below 92.00 at the start of the week.
- Wall Street's main indexes look to open in the positive territory.
After rising to its highest level since July at 0.9377 last week, the USD/CHF pair staged a deep correction and finished the week virtually unchanged. Amid a lack of significant fundamental drivers, the pair is struggling to make a decisive move in either direction on Monday and was last seen trading flat on the day a little below 0.9300.
DXY starts week in a calm manner
On Friday, the sharp upsurge witnessed in US Treasury bond yields helped the greenback gather strength against its major rivals.
Although the benchmark 10-year T-bond yield reached its highest level in more than a year at 1.646% earlier in the day, it reversed its direction and didn't allow the US Dollar Index (DXY) to build on Friday's gains. At the moment, the DXY is up only 0.1% at 91.78.
Later in the day, the Federal Reserve Bank of New York's Empire State Manufacturing Survey will be looked upon for fresh impetus. The next significant macroeconomic data from the US will be February Retail Sales on Tuesday.
Meanwhile, US stock index futures are up between 0.2% and 0.4% on Monday. A positive shift in market sentiment on the back of rising equity indexes could make it difficult for the USD to find demand and limit USD/CHF's upside.
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.
