- USD/CHF struggles to build on Monday’s modest gains.
- US Dollar Index stays in the positive territory above 97.50.
- FOMC Chairman Powell is scheduled to testify on the Fed’s coronavirus response.
The USD/CHF rose on broad-based USD strength and the upbeat market mood on Monday and gained more than 30 pips. Although the pair pushed higher and touched its best level in a week at 0.9533, it lost its traction and returned to 0.9500, where it was down 0.13% on the day.
The only data published from the US showed on Tuesday showed that the S&P/Case-Shiller Home Price Index increased by 4% on a yearly basis in April but was largely ignored by the market participants. Later in the session, the ISM Chicago will release its PMI data for June.
Focus shifts to Powell’s testimony
More importantly, FOMC Chairman Jerome Powell and Treasury Secretary Mnuchin will be testifying before the US House of Representatives Financial Services Committee on the fiscal and monetary response to the coronavirus crisis. Ahead of this event, the US Dollar Index is up 0.12% on the day at 97.60, keeping the bearish momentum intact.
Meanwhile, Wall Street’s main indexes remain on track to open the day in the negative territory on Tuesday. If the market sentiment turns sour in the second half of the day, the USD could continue to gather strength and drag USD/CHF below 0.9500.
Technical levels to watch for