USD/CHF struggles to find direction, trades in tight range near 0.9630
- USD/CHF is fluctuating in a tight channel on Monday.
- US Dollar Index posts small daily gains near 97.00.
- Wall Street looks to open the day modestly higher.
The USD/CHF pair registered strong gains on Friday and closed the week virtually unchanged at 0.9625. On Monday, the pair is staying relatively calm and was last seen moving sideways near 0.9630.
USD ends previous week on strong footing
The upbeat jobs report from the US last week helped the US Dollar Index (DXY) snap its eight-day losing streak. With the Nonfarm Payrolls (NFP) increasing by 2.5 million in May, investors started to price in a possible shift in the Federal Reserve's stance and the DXY recovered to 97.00 area. On Wednesday, the FOMC will release its monetary policy statement and the USD is likely to remain resilient against its rivals until this event.
Additionally, stock markets rose sharply on the back of the impressive NFP figures and made it difficult for the CHF to find demand as a safe-haven. At the moment, the S&P 500 futures are up 0.55% on the day and USD/CHF could continue to stretch higher if Wall Street extends last week's rally.
The US economic docket won't be featuring any significant macroeconomic data releases on Monday. On Tuesday, the Unemployment Rate, which is expected to rise to 3.7% from 3.3%, data from Switzerland will be looked upon for fresh impetus.
Technical levels to watch for