USD/CHF pushes higher to a fresh session peak above 0.9960

The USD/CHF pair edged higher to a new session high in the late US afternoon as the greenback caught a fresh buying wave. As of writing the pair is trading at 0.9962, up 0.12% on the day.

The pair slipped to a daily low at 0.9930 at the beginning of the NA session after today's data showed that the Fed's favorite inflation gauge, the PCE price index, dropped below the 2% target level as it came in at 1.8% (YoY) in March. Furthermore, other data revealed that the personal spending and income growth in the U.S. weakened in March, as the latest Q1 GDP data suggested.

Following the initial drop, the pair was able to quickly recover back into the positive area as the demand for the safe haven CHF decreased amid an improved risk sentiment. The major equity indexes started the day in an optimistic tone as the U.S. Congress was able to reach a deal to fund the federal government averting a possible shutdown. Furthermore, the 10-year T-bond yield in the U.S. recorded a daily gain of more than 1.5% and further supported the greenback. 

• US Dollar consolidates in familiar range below 99

Tomorrow's calendar won't be offering any data that could directly impact the pair and the price action is likely to be driven by the risk sentiment and the DXY movement.

Technical outlook

The pair could encounter the first hurdle at 0.9985 (200-DMA) ahead of 1.0000 (psychological level) and 1.0030 (100-DMA). On the downside, a break below 0.9890 (Friday low) could open the door to 0.9810 (Mar. 27 low) and 0.9735 (Nov. 8 low).