USD/CHF tops five-month highs near 0.9350 amid stronger USD
- USD/CHF trades modestly higher on Thursday in the early Asian trading hours.
- US Dollar Index record gains above 94.00, jumps to a one-year high.
- Fed’s tapering, US Government shutdown, inflation concerns are the talking points.
The USD/CHF pair prints gains for the fifth straight day on Thursday in the Asian session. The pair confided in a narrow trade band after posting nearly 70-pips movement in the overnight session. At the time of writing, USD/CHF is trading at 0.9343, up 0.01% for the day.
The buying pressure in the greenback keeps USD/CHF on the higher side. The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, extended gains for the third consecutive session above 94.00, the highest since September 2020 on Fed’s tapering expectations and growth concerns.
In addition, US Federal Reserve Chair Jerome Powell said that the economy has all but met the test for tapering but there’s still a long way from meeting the test for maximum employment during the testimony in Congress. Furthermore, the Philadelphia Fed President Patric Harker favours tapering of $120 billion monthly asset purchases as moderation in inflation is visible now.
Meanwhile, the greenback remains unfazed even as US Senate Republicans blocked a bid by President Joe Biden’s Democrats to head off a potentially crippling US credit default. It is worth noting that, S&P 500 Futures is trading at 4,363.25, up 0.31% gains.
As for now, traders are bracing for the Swiss KOF Leading Indicators, US Gross Domestic Product (GDP), Initial Jobless Claims, and Chicago Purchasing Managers Index (PMI) data to gauge the market sentiment.
USD/CHF additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
