USD/CHF stays calm near mid-0.98s, attention turns to Fedspeak
- US Dollar Index recovers above 97 handle on Tuesday.
- Coming up: Retail sales data from the U.S. and speeches by FOMC members & Chairman Powell.
After closing the previous day flat near mid-0.98s, the USD/CHF pair struggles to make a decisive move in either direction as investors stay on the sidelines ahead of the day's key macroeconomic events. As of writing, the pair was up 5 pips on the day at 0.9850.
Following yesterday's technical correction, the US Dollar Index preserved its bullish momentum and rose above the 97 mark today. However, with the market sentiment staying neutral ahead of the day's key events, the CHF remains relatively resilient against its rivals.
In the second half of the day, retail sales data from the U.S. will be looked upon for fresh catalysts. More importantly, Atlanta Fed President Bostic, who last week argued that inflation was not 'so far away' from the Fed's target, Chicago Fed President Evans, and FOMC Chairman Powell will be delivering speeches later in the session.
During his semi-annual testimony last week, Powell voiced his concerns over the potential negative impact of the dismal global economic outlook on the U.S. economy and reiterated that the Fed will act as appropriate to sustain the growth to put the greenback under a modest pressure for the remainder of the week.
Technical levels to consider