USD/CHF directionless above 0.97 on quiet Monday

The USD/CHF pair trades calmly in a tight range above the 0.97 handle on Monday amid a lack of fundamental catalysts. As of writing, the pair was trading at 0.9725, virtually unchanged on the day.

Earlier in the day, the pair gathered some bullish momentum to reach a daily high at 0.9747 before easing back towards the opening levels. Fitch Ratings' announcement to revise up the global GDP growth forecast for 2017 and 2018 seems to be the behind that move as the improved sentiment reduces the interest on traditional safe-havens like the CHF.

• Fitch revises up 2017 and 2018 world GDP growth forecasts

On the other hand, the US Dollar Index is comfortably holding above the 93 mark, preserving its NFP-led gains from Friday and making it easy for the pair to limit losses. At the moment, the index is at 93.35, where it closed the previous week. Moreover, major equity indexes in the U.S. are signaling towards a slightly higher opening on Monday, which could keep the risk appetite high in the remainder of the day.

The only data from the U.S. will be the Fed's Labor Market Conditions Index for July. Later in the session, a couple of FOMC members, St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari, will be giving speeches, which could bring some volatility to the markets. However, they are unlikely to offer any surprising statements to the participants.

Technical outlook

The RSI indicator on the daily and H4 charts are moving sideways between the 50 and 70 marks, failing to give any clues regarding the next short-term direction. 0.9765 (Jun. 20 high) could be seen as the initial hurdle ahead of 0.9810 (May 30 high) and 0.9850 (Mar 17 high). On the flip side, supports align at 0.9670 (Aug. 4 low), 0.9600/10 (psychological level/20-DMA) and 0.9490 (Jul. 27 low).