• US dollar rises sharply across the board during the American session amid risk aversion.
  • S&P 500 falls more than 1% for the second day in a row.
  • USD/CHF accelerates to the upside, eyes 0.9600.

The USD/CHF is rising sharply, approaching 0.9600 on Friday, boosted by a stronger US dollar across the board. The DXY is up 0.60%, trading above 101.00, at the highest since March 2020.

More than a rally

The US dollar gained speed during the American session and boosted USD/CHF to 0.9590, the highest level since June 2020. It remains near the top, holding onto significant gains.

Expectations for a more aggressive tightening from the Federal Reserve continue to weigh on markets. In Wall Street, main indices are falling more than 1% for the second day in a row. US yields are relatively steady on Friday, holding near multi-year highs.

Economic data from the US came in mixed on Friday with the S&P Global PMI. The Manufacturing index rose unexpectedly to the strongest in nine-month while the Service sector indicator tumbled to the lowest in three months. Next week’s data includes the first estimate of Q1 GDP.

Above the 200-week SMA

The USD/CHF is about to post the third weekly gain in a row, accumulating a gain of more than 300 pips. The weekly close will be the first one above the 200-week Simple Moving Average in two years.

USD/CHF weekly chart

usdchf

This article was originally published by Fxstreet.com.Read the original article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here