USD/CHF returns to 0.9850 area as USD weakens modestly after PPI data
- Annual core PPI comes in at 2.9% vs 2.7% expected.
- NY Fed Empire Stat Manufacturing Index drops to 3.9 from 10.9.
- US Dollar Index erases small part of daily gains after data.
After advancing to a daily high of 0.9870 earlier in the day, the USD/CHF pair erased a small part of its daily gains as the greenback met a modest selling pressure following the disappointing macroeconomic data releases from the U.S. As of writing, the pair was still up 0.37% on the day at 0.9850.
The data published by the U.S. Bureau of Labor Statistics on Tuesday revealed that the PPI stayed unchanged at 2.5% on a yearly basis in December. The core PPI, which excludes volatile food and energy prices, came in at 2.7% to fall short of the market expectation of 2.9%. Furthermore, the NY Fed's Empire State Manufacturing Index dropped to 3.9 in January from 10.9 in December. The US Dollar Index weakened slightly from the daily high of 95.93 to 95.80 area after the data.
Later in the session, markets will be paying close attention to Wall Street's performance following today's dismal earnings data from large financial institutions in the U.S. Meanwhile, the Brexit vote could cause the market volatility to rise and impact the pair's price action as well.
Technical levels to consider
Today Last Price: 0.9848
Today Daily change: 36 pips
Today Daily change %: 0.367%
Today Daily Open: 0.9812
Previous Daily SMA20: 0.9863
Previous Daily SMA50: 0.9934
Previous Daily SMA100: 0.988
Previous Daily SMA200: 0.9889
Previous Daily High: 0.9851
Previous Daily Low: 0.9799
Previous Weekly High: 0.9876
Previous Weekly Low: 0.9716
Previous Monthly High: 1.0009
Previous Monthly Low: 0.979
Previous Daily Fibonacci 38.2%: 0.9819
Previous Daily Fibonacci 61.8%: 0.9831
Previous Daily Pivot Point S1: 0.979
Previous Daily Pivot Point S2: 0.9769
Previous Daily Pivot Point S3: 0.9738
Previous Daily Pivot Point R1: 0.9842
Previous Daily Pivot Point R2: 0.9873
Previous Daily Pivot Point R3: 0.9894