USD/CHF registers small daily gains around mid-0.9100s
- USD/CHF is trading in a very tight range on Monday.
- US Dollar Index stays calm around 93.00 at the start of the week.
- SNB's Jordan reiterated that currency intervention is their important instrument.
The USD/CHF pair gained nearly 100 pips last week and seems to have gone into a consolidation phase amid a lack of significant fundamental drivers on Monday. As of writing, the pair was up 0.14% on a daily basis at 0.9144.
The broad-based USD strength allowed USD/CHF to turn north last week. Upbeat macroeconomic data releases from the US provided a boost to the greenback and the US Dollar Index (DXY) gained 0.73% to close near 93.00. With the market action turning subdued amid the Labor Day holiday in the US, the DXY is up modestly at 93.02.
SNB commentary weighs on CHF
On the other hand, Swiss National Bank (SNB) officials voiced their willingness to continue with currency interventions and made it difficult for the CHF to find demand.
On Friday, SNB Chairman Thomas Jordan reiterated that currency intervention is the most important tool that they have at the moment. "The franc is a safe-haven, always where there is an increase in uncertainty there is a search for safe havens," Jordan added. Earlier in the week, SNB Vice-Chairman Fritz Zurbruegg noted that negative rates and currency interventions are fundamental for the Swiss economy.
There won't be any macroeconomic data releases in the remainder of the day and the pair is likely to continue to move sideways above 0.9100.
Technical levels to watch for