- USD / CHF is falling for the third day in a row on Tuesday.
- The US dollar index extends the daily decline to the 90.50 area.
- Focus shifts to US January inflation data.
After spending the first half of the day in a tight range around 0.8970, the pair USD/CHF it was under renewed downward pressure during the US session and fell to its lowest level in a week at 0.8925. At time of writing, the pair was down 0.62% on the day at 0.8930.
DXY remains bearish
The USD market valuation remains the main driver of USD / CHF movements on Tuesday. Pressured by the sharp drop seen in US Treasury yields, the US dollar index continued to push lower and was last seen losing 0.43% on the day at 90.52.
Earlier in the day, US data revealed that NFIB’s Business Optimism Index declined in January, while JOLTS job openings rose to 6.6 million in December from 6.57 in November.
On Wednesday, markets will pay close attention to the US inflation report. The Basic Consumer Price Index is expected to decline to 1.5% in January and a higher than expected reading could help the USD regain its strength.
On the other hand, the Swiss National Bank reported last week that its foreign exchange reserves increased by CHF 3.8 billion to CHF 896 billion in January, compared to an increase of CHF 14.25 billion reported in December.
Technical levels
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