- USD / CHF appears to be closing for the second day in a row in negative territory.
- The US dollar index fell below 90.50 after the US data.
- The major Wall Street indices posted impressive gains on Friday.
The pair USD/CHF it extended its daily decline during US trading hours and touched a daily low of 0.9013. At time of writing, the pair was trading at 0.9028, shedding 0.35%.
The strong rally observed in the main Wall Street indices weighed on the dollar in the second half of the day and forced the USD / CHF to continue pushing down. At the moment, the S&P 500 Index is up 1.1% on the day and the US Dollar Index is losing 0.4% to 90.35.
Data from the US showed on Friday that retail sales in April were unchanged at $ 619.9 billion. Additionally, the US Federal Reserve reported that Industrial Production expanded 0.7%, compared to analysts’ estimate of 1%, and the University of Michigan Consumer Sentiment Index fell to 82.8 from 88.3 . However, these uninspiring figures were largely ignored by market participants.
Meanwhile, the 10-year US Treasury yield is falling 1% on the day, preventing the USD / CHF from rebounding before the weekend.
USD / CHF outlook
Analysts at Credit Suisse believe that a sustained move back below 0.9030 would confirm a short-term spike for USD / CHF. “Thereafter, the next levels are seen at 0.9000 / 8985, which stalled the market on Monday, then at 0.8922 / 10, before 0.8871 / 62, which is a significant low,” the analysts added. “Resistance remains at the 200-day average at 0.9083 / 9115, which should now ideally limit to keep risks directly lower. Above here, the next levels are seen at 0.9165.”
Additional levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
