- The USD / CHF is testing the lower limit of its 10 day range.
- On Wednesday, the US dollar index will fall back to 99.
- The minutes of the FOMC meetings will be reviewed for fresh impetus.
The USD / CAD pair ended the day almost unchanged near 0.9700 on Tuesday and remained calm in this region before starting to fall during European trading hours. At the time of writing, the pair lost 0.58% on the day at 0.9656 and was testing the lower limit of its 10-day range.
DXY expands its slide
The market valuation of the USD seems to remain the main driver of the movements of the USD / CHF. The US dollar index (DXY), which wiped out last week’s gains on Monday, was down for the third day in a row on Wednesday. As investors await major US macro data on Thursday, the greenback is struggling to find demand as a refuge. Right now, DXY is down 0.32% on the day to 99.26.
Although the main Wall Street indices could not rely on Monday’s impressive gains, futures on the S&P 500 are gaining more than 1% on Wednesday to signal a strong opening, which could still weigh on the ball.
Later today, the FOMC will publish the minutes of its April meeting. FOMC president Powell reiterated on Tuesday that the Fed was determined to use its full range of boobies to continue supporting the economy. However, negative interest rates are not on the table and investors will look for new clues to this in the FOMC statement.