- USD/CHF attempts to defend the crucial support of 0.9000 amid a risk-off sentiment in the markets.
- The DXY Dollar Index remains above 106.00 points thanks to good retail sales data.
- US retail sales were boosted by demand for automobiles, increased eating out, and rising gasoline prices.
The USD/CHF pair tries to recover from below the psychological level of 0.9000 during the European session. The overall outlook for the pair remains bearish as the US Dollar is struggling to extend its recovery despite strong US retail sales data.
S&P500 futures register some losses in the European session, reflecting the markets’ caution in the face of the worsening of the Middle East crisis. US stocks finished flat on Tuesday as investors became anxious about the upcoming quarterly earnings season.
The DXY Dollar Index remains above 106.00 points as strong consumer spending in September demonstrated that the US economy is resilient despite headwinds from higher interest rates.
The US Census Bureau reported Tuesday that consumer spending momentum expanded at a faster pace of 0.7% in September, compared to estimates of 0.3%. Strong retail sales were boosted by buoyant auto demand, increased eating out and rising gasoline prices.
Looking ahead, investors will be watching Federal Reserve (Fed) Chairman Jerome Powell’s speech on Thursday. Investors appear puzzled over whether Jerome Powell will join his colleagues in supporting a neutral interest rate stance or whether he will remain hawkish on the outlook for monetary policy.
On the Swiss franc front, the currency’s appeal remains bullish amid growing conflicts between Israel and Palestine. Safe-haven demand for the Swiss franc would remain optimistic due to heightened tensions in the Middle East.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
