USD/CHF trades in narrow range above 0.9100 as focus shifts to US PMI data
- USD/CHF is struggling to find direction on Monday.
- US Dollar Index loses traction as risk flows return.
- Investors await US Manufacturing PMI reports and FOMC Chairman Powell speech.
The USD/CHF pair closed the previous week virtually unchanged above 0.9100 and continues to have a difficult time making a decisive move in either direction. As of writing, the pair was flat on the day at 0.9133.
DXY drops toward 91.00 on Monday
Despite the broad-based selling pressure surrounding the greenback, USD/CHF stays relatively quiet as the US Treasury bond yields also move sideways ahead of the IHS and ISM Manufacturing PMI data from the US. At the moment, the US Dollar Index is losing 0.23% on a daily basis at 91.08.
Previewing the ISM Manufacturing PMI data, "the manufacturing sector, though only about 15% of US GDP is considered an indicator for the welfare of the overall economy," said FXStreet Senior Analyst Joseph Trevisani. "The waning of the pandemic has not only released a tide of business delayed by last year's lockdowns, but consumers are spending in relief and enjoyment."
In the meantime, Wall Street's main indexes remain on track to open the day sharply higher, suggesting that the USD will struggle to find demand with risk flows dominating the financial market in the second half of the day. Later in the day, FOMC Chairman Jerome Powell will be delivering a speech.
Technical levels to watch for