USD/CHF rises further above 1.0100, to fresh 5-week highs
- US Dollar strengthens during the US session.
- Swiss franc among worst performers of the day.
The combination of a weaker Swiss franc and a recovery of the US Dollar during the American session pushed USD/CHF further to the upside. The pair reached 1.0110 a fresh 5-week high.
Despite the fact that most majors are moving in small ranges on a low volatility session, USD/CHF continues to rise. Since the beginning of the week rose around 80 pips. The CHF is also falling against the Euro (EUR/CHF above 1.1400 at 2-month highs) and the Pound (GBP/CHF at 2-week highs).
Markets remain calm after the Fed’s Beige Book. According to the Fed, the economy expanded at a slight-to-moderate pace from March to early April. Tomorrow in the US, retail sales number are due and also Swiss trade balance data.
Eyes on key level
The pair heads for the fourth weekly gain in-a-row and the highest close in the mentioned time frame since March 2017. A close around current levels would be strong positive signal for the US dollar and could point to a test of the 2018 high seen at 1.0127.
If the pair pulls back below 1.0080, the likelihood of a correction will rise taking into account that the 1.0100/1.0130 has been a strong resistance over the last two years and every test so far has been followed by a move lower. The last one took place in March and USD/CHF bottomed at 0.9897.