USD/CHF consolidates modest losses below 0.9050
|- Bulls take a breather on quiet Monday and the USD/CHF retreats to the 0.9030 zone.
- Positive market mood amid debt-ceiling agreement weights on the US Dollar.
- US NFP and Switzerland GDP data eyed.
The USD/CHF trades for a second consecutive day with losses as interest in the US Dollar wanes due to the US debt-ceiling agreement announced on Sunday. This has fueled a positive market mood which is anathema to the safe-haven Greenback. In addition, as the US celebrates Memorial Day, the low volume in the markets seems to be weighing on the pair . On Tuesday, investors will eye Swiss Q1 GDP data.
Traders eye US NFP and Swiss Q1 GDP data
On Sunday, an announcement was made by US President Joe Biden and Republican House Speaker Kevin McCarthy stating that they have come to an agreement on extending the debt ceiling. The proposal suggests allowing the government to borrow money without increasing the limit, temporarily suspending it until 2025. However, the deal still needs approval from Congress, although officials are optimistic about its passage.
This news had a positive impact on Wall Street futures, and put downward pressure on the US Dollar.
On Tuesday, Swiss Statistics will release Gross Domestic Product (GDP) data from Q1. This is expected to have expanded at a weak annualized rate of 0.6% from its previous 0.8%.
Nonfarm Payrolls (NFP) data from the US from May is expected to hint at more pain in the American labor market whose outlook is heavily considered by the Federal Reserve for its monetary policy decisions. In that sense, labor market figures may have an impact on the expectations for the next meeting on June 14 and hence in the US Dollar price dynamics. Other relevant data that will be published this week includes the ISM services index and the ADP employment change data.
Levels to watch
Technically speaking and as per the daily chart, the USD/CHF holds a neutral-to-positive outlook for the short term, as the indicators still remain in positive territory despite losing momentum.
To gain momentum the bulls must retake the 0.9060 area which could potentially pave the way towards the 0.9075 area and then to the 100-day Simple Moving Average (SMA) at 0.9133.
On the downside, support levels are seen at the 0.9020 level followed by the psychological mark at 0.9000 and at the 20-day Simple Moving Average (SMA) currently at the 0.8960 zone.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.