- The USD / CHF is struggling to hold above 0.9700 on Tuesday.
- The US dollar index continues to fall after Monday’s sharp drop.
- FOMC President Powell will testify before the Senate Banking Committee.
The USD / CHF pair spent most of the day moving sideways in a narrow range around 0.9720, but was subjected to slight downward pressure before the US session. At the time of writing, the pair had small daily losses at 0.9705.
The USD stays on the back
The poor performance of the USD seems to cause the pair to lose traction. Before the testimony of FOMC president Powell before the Senate banking committee, the US dollar index (DXY) was at its lowest level in a week at 99.30.
As a preview of this event, “Even if the White House and the Fed have taken slightly different paths in recent weeks with Mr. Powell advocating more budget spending and Secretary Mnuchin suggesting an evaluation period for the stimulus before providing more, the two are likely to underscore the complementary nature of government measures, “said Joseph Trevisani, analyst at FXStreet.
Meanwhile, after Monday’s resumption of risk, the financial markets opposed the risk on Tuesday, helping the CHF remain resilient against its rivals. Currently, the German DAX and Euro Stoxx 50 indices are down 0.55% and 0.8%, respectively.
In the second half of the day, the only data in the US economic file will be housing starts and building permits.