USD/CHF pares early gains, turns flat near 0.8850 ahead of US GDP report
- USD/CHF lost its momentum after climbing to 0.8880.
- US Dollar Index stays relatively quiet above 91.00.
- US Bureau of Economic Analysis will release third-quarter GDP data.
The USD/CHF pair advanced beyond 0.8900 on Monday but erased its daily gains to close virtually unchanged at 0.8855. Although the pair climbed to 0.8880 earlier in the day on Tuesday, it failed to preserve its momentum amid a lack of significant fundamental drivers. As of writing, USD/CHF was posting small losses at 0.8850.
DXY rally loses steam on Tuesday
The risk-off market environment on coronavirus fears and no-deal Brexit concerns at the start of the week helped the USD gather strength against its rivals.
The US Dollar Index (DXY) rose all the way up to 91.02 but changed its direction in the second half of the day as Wall Street's main indexes staged a steady rebound supported by the stimulus deal in the US. Currently, the S&P 500 Futures are up 0.2% on the day, suggesting that the USD is unlikely to outperform its peers during the American trading hours.
On Tuesday, the DXY stays relatively quiet as investors wait for the US Bureau of Economic Analysis to announce its third estimate for this quarter GDP growth. At the moment, the index is up 0.04% at 90.07. Other data releases from the US will include November Existing Home Sales and the Richmond Fed Manufacturing Index for December.
On Wednesday, the Swiss National Bank will release its Quarterly Bulletin for the fourth quarter.
Technical levels to watch for