USD/CHF eyeing 0.9900 as US dollar trend remains intact

• The US Dollar Index breaks new highs currently trading in the 90.50 region. 
• Friday US inflation and Gross Domestic Product will be closely monitored by market participants. 

The USD/CHF is trading at around 0.9880 up 0.49% on Thursday as the bull trend in the US dollar keeps extending.

Earlier in the day, after the widely awaited ECB press conference, US dollar bulls resumed the uptrend and brought the US Dollar Index (DXY) above the 90.50 mark. DXY measures the strength of the greenback relative to a basket of currencies where the euro weighs more than 56%.  

Before the ECB press conference DXY was trading sideways and had a small spike down as Mario Draghi, the President of the European Central Bank (ECB) proved to be rather upbeat on the economy. However, he did not really bring anything new that the market didn’t already know from the previous ECB meeting in March and the DXY bull trend resumed. 

Meanwhile, it has been reported that the top White House Economic Adviser Larry Kudlow and Treasury Secretary, Mnuchin are set to go to China to find solutions to the trade war issues. The news further supported the USD bull trend. 

Investors will shift their attention to Friday’s US data. The Personal Consumption Expenditure (PCE) will be closely watched by investors and Fed officials alike as the PCE is the favorite gauge of inflation used by the Federal Reserve Bank. A strong deviation in the reading can have meaningful consequences in the US dollar rate. The other important event on Friday will be the release of the US Gross Domestic Product. The US annualized GDP is forecast to decelerate to 2.3% from the 2.9% in the previous reading.

USD/CHF daily chart

The trend is bullish, resistance is seen at 0.9900 and 1.0000 figure while support is seen at 0.9846 swing high and at 0.9750 demand zone.