USD/CHF struggles to find direction, trades around 0.8900
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- USD/CHF trades in tight range after posting losses last week.
- US Dollar Index remains on the back foot on Monday.
- Trading action is likely to remain subdued in the second half of the day.
The USD/CHF pair lost nearly 90 pips last week and seems to be having a tough time staging a rebound on Monday. As of writing, the pair was virtually unchanged on the day at 0.8909.
DXY stays in the red below 90.50
The ongoing USD weakness is keeping USD/CHF's upside capped at the start of the week. The US Dollar Index (DXY), which lost 0.7% last week, is posting small daily losses near 90.30 on Monday as the upbeat market mood doesn't allow the safe-haven greenback to attract investors.
Mirroring the risk-positive market environment, the Euro Stoxx 50 and the UK's FTSE 100 indexes are up 1% and 1.6%, respectively.
There won't be any macroeconomic data releases featured in the US economic docket and stock markets will be closed due to the Presidents Day holiday, suggesting that the trading action will likely remain subdued during the American session.
The next potential catalyst for USD/CHF will be Retail Sales data from the US and the FOMC's February Meeting Minutes on Wednesday. Investors expect Retail Sales in January to rise by 1% following December's decline of 0.7% and a better-than-expected reading could help the greenback stage a rebound against its major rivals.
Technical levels to watch for
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