USD/CHF fails to hold above 0.8900 as focus shifts to Wall Street
- USD/CHF is struggling to find direction in choppy day.
- US Dollar Index stays flat above 90.00 on Monday.
- Wall Street looks to open with strong gains.
The USD/CHF pair climbed to a daily high of 0.8919 on Monday but failed to extend its upside amid light holiday trading. As of writing, the pair was virtually unchanged on the day at 0.8888.
DXY stays calm above 90.00
Earlier in the day, the greenback came under renewed selling pressure after US President Donald Trump signed the coronavirus stimulus bill into law. The upbeat market mood provided a boost to risk-sensitive assets and made it difficult for the USD to find demand.
The US Dollar Index (DXY) dropped below 90.00 in the early trading hours of the European session but staged a technical rebound and turned flat around 90.20.
At the moment, the S&P 500 futures are up 0.71% on the day, suggesting that Wall Street's main indexes are likely to open decisively higher. A sharp upsurge in US stocks could force the USD to remain on the back foot.
The only data featured in the US economic docket will be the Federal Reserve Bank of Dallas' Manufacturing Business Index for December.
The market action is largely expected to remain subdues in the remainder of the week.
Technical levels to watch for