USD/CHF edges lower toward 0.8950 as USD struggles to find demand
- USD/CHF came under modest bearish pressure in American session.
- US Dollar Index continues to push lower as risk flows dominate the markets.
- Wall Street’s main indexes post strong gains after the opening bell.
The USD/CHF pair rose to a daily high of 0.9003 during the European trading hours but lost its traction with the greenback struggling to find demand in the second half of the day. As of writing, the pair was down 0.2% on a daily basis at 0.8959.
DXY edges lower on Monday
In the absence of significant fundamental drivers, the USD’s market valuation continues to impact USD/CHF’s movements. After Wall Street’s main indexes opened decisively higher on Monday, risk flows continue to dominate the markets and force the USD to stay on the back foot.
At the moment, the S&P 500 and the Nasdaq Composite indexes are up 1% and 1.65%, respectively. Meanwhile, the US Dollar Index (DXY) is losing 0.25% on the day at 89.79.
The only data from the US revealed on Monday that the Federal Reserve Bank of Chicago’s National Activity Index fell to 0.24 in April from 1.71 in May.
There won’t be any other data releases from the US in the remainder of the day and investors are likely to remain focused on risk perception. Cleveland Federal Reserve President Loretta Mester and Atlanta Federal Reserve President Raphael Bostic are scheduled to deliver speeches later in the session.
Technical levels to watch for
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May 24, 2021 at 07:38AM