- The Swiss franc is among the weakest currencies in the G10 on Monday.
- The dollar loses strength due to the recovery of the stock markets.
- Ahead: ISM and PMI of the US manufacturing sector.
The USD / CHF moved away from the highs in weeks of 0.9188, but still in positive territory, on the way to having the sixth consecutive win. The pair lost moment after approaching 0.9200 and is trading at the 0.9170 area.
DXY loses steam and approaches 94.00
The dollar reached a maximum in the market hours ago but then lost momentum. The DXY reached as high as 94.30, the highest level in a month, and is now retracing near 94.00.
The rise in the stock markets detracted from the dollar. Positive and better-than-expected data from Europe (manufacturing PMI) coupled with a technical rebound are supporting stocks. S&P 500 futures are up 1.3% on the day. If the major Wall Street indices post strong gains on Monday, the dollar could struggle.
The economic calendar shows ahead of the publication of the IHS Markit and the ISM of the manufacturing sector. Unless there is a large divergence from market expectations, the market reaction is likely to be close to nil, considering that Tuesday will be the presidential election.
Credits: Forex Street
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