- USD / CHF is struggling to find direction on Monday.
- The US dollar index loses traction as risk flows return.
- Investors await the US Manufacturing PMI reports and FOMC Chairman Powell’s speech.
The pair USD/CHF it closed the prior week virtually unchanged above 0.9100 and continues to struggle to make a decisive move in either direction. At time of writing, the pair was flat on the day at 0.9133.
DXY drops towards 91.00 on Monday
Despite widespread selling pressure surrounding the dollar, USD / CHF remains relatively calm as US Treasury yields also move sideways ahead of IHS and ISM manufacturing PMI data. At the moment, the US Dollar Index is shedding 0.23% on the day at 91.08.
In a preview of ISM Manufacturing PMI data, “The manufacturing sector, although only about 15% of US GDP is considered an indicator of the well-being of the overall economy,” said FXStreet Senior Analyst Joseph Trevisani. “The disappearance of the pandemic has not only unleashed a wave of business delayed by last year’s lockdowns, but consumers are spending on relief and enjoyment.”
Meanwhile, the major Wall Street indices are still on track to open the day sharply, suggesting that the USD will struggle to find demand with risk flows dominating the financial market in the second half of the day. Later that day, FOMC President Jerome Powell will deliver a speech.
Technical levels
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