Forex Pros – The U.S. dollar erased losses against the Swiss franc on Monday, to re-approach Friday’s five-week high as the dollar remained supported by expectations of higher U.S. interest rates.
USD/CHF pulled back up from 0.9711, the daily low, to hit 0.9734 during European morning trade, easing up 0.02%.
The pair was likely to find support at 0.9677, Friday’s low and resistance at 0.9775, Friday’s high and a five-week high.
The dollar has been supported by rising U.S. yields, which hit their highest in nearly 10 months last week and amid increased optimism about the U.S. economic outlook.
Last week, U.S. government data showed that initial claims for jobless benefits fell the previous week to the lowest level since July 2008. They dropped by 36,000, more than forecast, to 383,000, Labor Department figures showed.
The Swissie was also higher against the euro, with EUR/CHF shedding 0.62%to hit 1.3105.
Later in the week, the U.S. was to release closely watched data on retail sales and consumer price inflation, which would provide a gauge of whether the recent optimism in rates markets was justified.
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