USD/CHF stays directionless near 0.9930 ahead of US data
- US Dollar Index fluctuates above 95 on Thursday.
- July PPI and weekly jobless claims in the U.S. will be released next.
- The unemployment rate in Switzerland stays unchanged at 2.6%.
After recording losses for two straight days, the USD/CHF pair seems to have gone into a consolidation phase on Thursday as it moves back and forth in a very tight 25 pip range. As of writing, the pair was virtually unchanged on the day at 0.9930.
Earlier today, the data released by SECO showed that the unemployment rate in Switzerland stayed unchanged at 2.6% in July to match the analysts' expectation. Meanwhile, major equity indexes in Europe stay relatively quiet on Thursday to suggest a neutral market sentiment, which makes it difficult for the CHF to find demand. At the moment, the Eurostoxx 50 is down 0.2% on the day while Germany's DAX is losing only 0.08%.
In the early NA session, weekly jobless claims and the PPI reading from the United States will be looked upon for fresh impetus. Markets expect the annual core-PPI to remain steady at 2.8% on a yearly basis. Furthermore, Chicago Fed President Evans is scheduled to deliver a speech at 13:30 GMT.
Technical levels to consider
On the downside, 0.9915 (100-DMA) aligns as the first technical support ahead of 0.9865 (Jul. 31 low) and 0.9790 (Jun. 7 low). On the other hand, resistances could be seen at 0.9950 (daily high), 1.0000 (parity level) and 1.0065 (Jul. 13 low).