USD/CHF rebounds from 15-month lows, trades above 0.9700
|- US Dollar Index climbs above 96.70 on Thursday.
- European stocks register strong gains at the start of 2020.
- Wall Street's main indexes look to open decisively higher.
The USD/CHF pair hit its lowest level since September of 2018 at 0.9645 on the last trading day of 2019 and has gone into a recovery phase on Thursday as the risk-on atmosphere made it difficult for CHF to find demand. As of writing, the pair was up 0.3% on the day at 0.9706.
Sentiment turns positive after New Year break
Markets cheered the People's Bank of China's (PBOC) decision to cut the Reserve Requirement Ratio by 50 basis points to inject a $100 billion worth of stimulus into the economy at the start of the new year. Major European equity indexes rose sharply with the Euro Stoxx 50 gaining more than 1% and Germany's DAX adding around 0.7% on Thursday.
Moreover, the S&P 500 futures are up more than 0.5% to suggest that Wall Street's main indexes are likely to flirt with fresh all-time highs after the opening bell.
In the meantime, the selling pressure surrounding the greenback seems to have softened with the US Dollar Index staging a rebound before mid-tier data releases, which will include weekly Jobless Claims and the IHS Manufacturing PMI, from the US. On Friday, the SVME PMI will ve the only data release from Switzerland ahead of the ISM Manufacturing PMI and the FOMC December meeting minutes from the US.
Technical levels to consider
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