USD/CHF turns flat on the day near 0.9060 ahead of US data
- USD/CHF is trading in a relatively tight range on Thursday.
- US Dollar Index consolidates daily losses around 89.70.
- Eyes on US GDP, Durable Goods Orders and Initial Jobless Claims data.
The USD/CHF pair touched its highest level since December 2020 at 0.9096 on Wednesday and seems to be having a tough time making a decisive move in either direction on Thursday. As of writing, the pair was virtually unchanged on the day at 0.9061.
USD remains on the back foot as investors await US data
On Wednesday, the sharp upsurge witnessed in the US Treasury bond yields helped the greenback gather strength and provided a boost to USD/CHF. Although the 10-year US T-bond yield is up nearly 5% on Thursday, the US Dollar Index (DXY) stays deep in the negative territory with risk-sensitive currencies attracting investors. At the moment, the DXY is down 0.45% at 89.76 and limiting USD/CHF's upside.
Later in the session, the US Bureau of Economic Analysis' Gross Domestic Product (GDP) report and the US Department of Labor's weekly Initial Jobless Claims data will be looked upon for fresh impetus. Moreover, New York Federal Reserve President John Williams and Federal Reserve’s Vice Chair for Supervision Randal Quarles will be delivering speeches.
Meanwhile, the S&P 500 Futures are down 0.4% on the day and a sharp decline in major equity indexes after the opening bell could allow the greenback to start showing resilience against its rivals.
Technical levels to watch for