- The US dollar index posted modest gains on Thursday.
- The main European stock market indices are trading with small gains.
- A look at the weekly data on initial US unemployment claims.
The USD / CHF pair is struggling to determine its next direction as it continues to move sideways in a very tight range on Thursday after posting modest gains in the previous three days. At the time of writing, the pair was up 0.17% on the day at 0.9670.
Last week, widespread selling pressure surrounding the USD erased the pair by more than 300 pips. The pair’s bullish action in the first half of the week seems to be a technical correction to this drop. Meanwhile, major European stock indices post modest recovery gains on Thursday to make it difficult for the CHF to find demand as a safe haven.
Focus on unemployment claims in the United States
During the second half of the day, weekly data on initial US unemployment claims will be examined for further momentum. The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, remains calm above the 99.50 mark to allow the pair to stay within its daily range.
Last week, the Ministry of Labor reported that more than 3 million people had applied for unemployment benefits during the deadlock due to the coronavirus epidemic.
By previewing the data, “today’s publication is actually more important than tomorrow’s jobs report for March, as the end of the investigation period for this period predates the spike in jobless claims that we saw last week, “noted analysts at Deutsche Bank. be as up to date on the current economic situation as unemployment claims. “