USD/CHF advances to fresh 6-week highs near 0.99

ADP employment figures and non-manufacturing PMI beat expectations.
Upbeat data from the U.S. help the US Dollar Index stay above 95.50.
DJIA hits a new record high in early trade.

Eren Sengezer FXStreet

The USD/CHF pair extended its march higher in the second half of the day and came within a couple of pips of the 0.99 mark to renew its highest level since late August. As of writing, the pair was up 0.55% on the day at 0.9892.

According to the monthly report released by the ADP, private sector employment increased 230,000 from August to September and beat the market expectation of 185K by a wide margin. Other data showed that the business activity in the non-manufacturing sector continued to expand at a strong pace in September with both the Markit and ISM PMI figures surpassing the analysts' estimates. Ahead of the speeches by FOMC members Brainard and Mester and Chairman Powell, the US Dollar Index is adding 0.15% on the day at 95.63.

Commenting on the PMI readings, "The service sector continues to drive the U.S. economy to new heights. Record levels of business optimism combined with the very strong ADP report, point to a further acceleration in the already robust job market in Friday's payroll report," FXStreet Senior Analyst Joseph Trevisani said.

Meanwhile, major equity indexes in the United States started the day higher and the Dow Jones Industrial Average surged to a new all-time high to reflect an improved market sentiment, which diminishes the demand for safe havens such as the CHF. At the moment, the DJIA and the S&P 500 were adding 0.48% and 0.35%, respectively.

Technical levels to consider

With a decisive break above 0.9900 (psychological level), the pair could target 0.9965 (Aug. 20 high) and 1.000 (psychological level/parity). On the downside, supports are located at 0.9855 (100-DMA), 0.9760 (200-DMA) and 0.9700 (20-DMA).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.