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USD/CHF advances to 0.99 as DXY gains traction on strong US data

  • Both NFP and PMI figures help the USD preserve its bullish momentum.
  • USD/CHF adds 50 pips, remains in the red on a weekly basis.
  • Wall Street starts the day on a positive note.

The USD/CHF pair, which closed the last three days with losses, rose to a 2-day high at 0.9912 in the first half of the NA session before erasing a small part of its gains. As of writing, the pair was trading at 0.9895, adding 0.4% on the day.

The pair's upsurge was fueled by the upbeat macroeconomic data releases from the United States and a strengthening risk appetite. The first set of data showed that the unemployment level in the United States decreased to its lowest since 2000 with 3.8% as nonfarm payrolls increased by 223K to surpass the experts' estimate of 188K. 

Later in the session, manufacturing PMI reports published separately by Markit and ISM both revealed that the business activity in the sector remained healthy. Boosted by the strong data, the US Dollar Index jumped to a fresh session high at 94.45. Furthermore, after recording heavy losses on Thursday amid trade war concerns, Wall Street cheered the positive results and started the day on a positive note. At the moment, the Dow Jones Industrial Average and the S&P 500 were both up nearly 0.85% on the day.

There won't be any other macroeconomic data releases in the remainder of the session and the pair is likely to end the day in the green. On a weekly basis, however, the pair remains on track to record its fourth straight negative close.

Technical outlook

The pair could encounter the first interim support at 0.9840 (Jun. 1 low) ahead of 0.9800 (psychological level/100-WMA) and 0.9770 (Apr. 24 low). On the upside, resistances align at 0.9910 (Jun. 1 high) 1.0000 (psychological level/parity) and 1.0055 (May 10 high).

 

USD/JPY retreats from tops, still well bid around mid-109.00s

   •  Upbeat US jobs report/ISM PMI helps build on the intraday bullish move.    •  Bulls also seemed to track a strong pickup in the US bond yields.
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