USD/CHF pulls away from 2020 highs, trades around 0.9820
- US Dollar Index starts retracing weekly rally on Friday.
- Major European equity indexes post small daily losses.
- Coming up: Markit Manufacturing and Services PMI reports from US.
The USD/CHF pair touched its highest level since late December at 0.9849 on Thursday but lost its traction on Friday. As of writing, the pair was trading at 0.9823, losing 0.16% on a daily basis.
USD weakens after impressive rally
A broad-based USD weakness seems to be allowing the pair to edge lower on Friday. The US Dollar Index (DXY) gained a total of 0.75% in the last three trading days and rose to its highest level since April 2017 at 99.91. With the major European currencies attracting some investor interest on the back of upbeat PMI data, the USD lost its strength and the DXY was last seen down 0.17% on the day at 99.70.
Meanwhile, major European equity indexes are posting small daily losses to reflect a neutral market sentiment, which allows the USD's market valuation to drive the pair's movements.
In the second half of the day, the IHS Markit's preliminary Manufacturing and Services PMI for the US will be looked upon for fresh catalysts. Additionally, FOMC members Brainard, Mester and Clarida will be delivering speeches.
Technical levels to watch for