USD/CHF turns rangebound above 0.9050 as US Durable Goods Orders come into picture

The USD/CHF pair is demonstrating topsy-turvy moves above 0.9050 in the early Tokyo session. The Swiss Franc asset is expected to remain sideways as investors have shifted their focus toward the release of the United States Durable Goods Orders data.

S&P500 futures have displayed some losses in early Asia after a solid recovery on Thursday. The overall market mood is still cautious as investors are worried that the United States economy could announce a default in making obligated payments due to diverged proposals from the White House and Republican leaders.

Meanwhile, House of Representatives Kevin McCarthy said it's difficult to reach an agreement after diverged opinions on budget’s spending but we're working and will keep working till we finish.

The US Dollar Index (DXY) has shown some exhaustion in the upside momentum after printing a fresh two-month high of 104.31 as the resilience in the United States economy is releasing heat.

Weekly Federal Reserve (Fed) emergency lending to banks fell to its lowest level since the banking sector ran into trouble in March, as reported by Reuters. Tighter credit conditions and bleak economic outlook have forced firms to operate with their ploughed-back profits and that too at reduced operating capacity. This could result in easing labor market conditions which would allow the Fed to remain neutral on interest rates in June’s monetary policy meeting.

Going forward, US Durable Goods Orders data (April) will remain in focus. The economic data is seen contracting by 1.0% against an expansion of 3.2% reported earlier.

On the Swiss Franc front, Q1 Employment Level data will be keenly watched. As per the preliminary report, the Swiss labor market has added fresh 35K employees in the first quarter.