USD / CHF recovers above 0.9000 ahead of Powell’s testimony

• USD / CHF rises above 0.9000 during the European session on Tuesday.
• The US Dollar DXY Index remains positive above 90.10.
• Investor attention is on FOMC Chairman Jerome Powell’s testimony and US consumer confidence data.

The pair USD/CHF it closed the first day of the week practically unchanged at 0.8960 and has moved sideways during the Asian session on Tuesday. Nevertheless, The USD’s renewed strength during the European session has provided a boost to the pair. At the time of writing, the pair is gaining 0.41% on the day at 0.9003.

At the beginning of the session, Swiss data showed that the PPI producer price index rose 0.3% monthly in January, compared to analysts’ estimate of 0.1%, but has failed to trigger a significant market reaction.

The DXY index remains above 90.00

In the meantime, the US dollar DXY index has reversed direction after falling to a fresh multi-week low below 90.00 and has helped USD / CHF move into positive territory. At the moment, the DXY index is up 0.17% at 90.17. In the absence of important fundamental factors, the risk-off market environment, reflected by a 0.5% drop in S&P 500 futures, appears to be helping the US dollar to find demand.

Later in the day, the Conference Board will publish consumer confidence data for February. Additionally, FOMC Chairman Jerome Powell will deliver his comments on the state of the economy in his semi-annual testimony before the Senate Banking Committee.

Investors will pay close attention to Powell’s comments on the inflation outlook and rising Treasury yields. If the president adopts a pessimistic tone, the dollar is likely to remain on the defensive against its rivals.

USD / CHF technical levels