USD/CHF drops to fresh session lows near 0.9250 amid renewed USD weakness
- USD/CHF is edging lower for the second straight day.
- USD is struggling to find demand ahead of key data releases.
- Risk flows start to dominate financial markets on Tuesday.
The USD/CHF pair closed the first day of the week with small losses and moved sideways a little below 0.9300 during the Asian trading hours. Ahead of the American session, however, the pair lost its traction and was last seen losing 0.25% on the day at 0.9251.
DXY drops into negative territory after two-day winning streak
Renewed selling pressure surrounding the greenback seems to be causing USD/CHF to push lower. With the 10-year US Treasury bond yield falling nearly 1% on the day, the US Dollar Index (DXY) is down 0.15% at 91.70. Moreover, the upbeat market mood, as reflected by rising European equity indexes and US stock index futures, is putting additional weight on the safe-haven USD's shoulders.
Later in the day, the US Census Bureau will release February Retail Sales data before the Federal Reserve published the Industrial Production and Capacity Utilization figures.
Previewing the Retail Sales report, "we expect some modest payback in the February retail sales data after a surge in spending the prior month," said Wells Fargo analysts. "Direct checks from the December fiscal relief package burned a hole in consumers' pockets in January and resulted in the largest spending gain since June for most retailers."
Meanwhile, investors will continue to keep a close eye on US T-bond yields and the performance of Wall Street's main indexes in the second half of the day.
Technical levels to watch for