USD/CHF edges higher toward 0.9950, refreshes multi-week tops
- Greenback preserves strength it gathered on upbeat employment data.
- Wall Street starts the day in the negative territory on Monday.
After closing the previous week with a 30-pip gain, the USD/CHF continued to push higher and touched its highest level since June 19 at 0.9946. As of writing, the pair was a couple of pips below that level, adding 0.3% on a daily basis.
The broad-based USD strength since last Friday seems to be the primary driver of the pair's action. The US Dollar Index, which tracks the greenback's value against a basket of six major currencies, closed the week on a positive note after the U.S. Bureau of Labor Statistics reported that nonfarm payrolls in June increased by 224,000 to come in much better than the market expectation of 160,000.
More importantly, hopes of the Fed opting out for multiple rate cuts started to recede amid the upbeat employment data and provided an additional boost to the greenback.
With the lack of macroeconomic data releases allowing the dollar to preserve its strength on Monday, the pair stays in its uptrend. As of writing, the DXY was up 0.23% on the day at 97.39.
On Tuesday, FOMC Chairman Powell and FOMC members Quarles and Bostic will be delivering speeches and investors will look for clues regarding the Fed's policy outlook.
Technical levels to consider