- The USD / CHF rebounds above 0.9600 after falling to monthly lows.
- The pair remains undecided because the USD and CHF are both struggling to find demand.
- The Swiss economy is expected to contract by 2.2% in the first quarter.
The USD / CHF pair fell to its lowest level since the first day of May at 0.9574 on Tuesday but recovered its losses in the second half of the day. At the time of writing, the pair was up 0.15% on the day to 0.9620.
Earlier today, widespread selling pressure surrounding the greenback pushed the pair down. However, the optimistic mood of the market, which was the main cause of the weak dollar, also weighed on the CHF and allowed the pair to reverse its direction.
The main European stock market indices ended the day with solid gains on Tuesday and the main Wall Street indices rose slightly despite the protests and riots in major American cities.
Focus on the Swiss GDP report
US data alone on Tuesday showed that the ISM-NY trade conditions index had risen to 19.5 from its historic low of 4.3 in April. The US dollar index remains on track to close the sixth consecutive day in negative territory near 97.70.
On Wednesday, data on Switzerland’s gross domestic product (GDP) will be closely followed by market players. Investors expect the Swiss economy to contract 2.2% on a quarterly basis in the first quarter. A worse-than-expected reading could lead the markets to assess a higher probability for the Swiss National Bank (SNB) to intervene in the currency markets and raise USD / CHF.