USD/CHF stays in range below parity amid muted reaction to US GDP data
- Real GDP growth in the U.S. in Q3 stays unchanged at 3.5% in the second estimate.
- US Dollar Index stays flat on the day near 97.40.
With the GDP report from the U.S. failing to inject life into the markets, the USD/CHF stays in its tight 20-pip range below the parity mark and was last seen trading at 0.9990, where it was virtually unchanged on the day.
According to the second estimate of the U.S: Bureau of Economic Analysis, the real GDP growth in the third quarter stayed steady at 3.5% to match analysts estimates. Commenting on the data, “US economic growth in the third quarter confirmed at 3.5% was never the problem. It's the slope down to 2.5% in the fourth quarter and beyond that should worry the Fed. Whether rate increases are the cause is debatable but the governors do not want to be blamed for a return to the post-recession doldrums,” said Joseph Trevisani, a senior market analyst at FXStreet.
- US: Real GDP growth in Q3 (second estimate) stays unchanged at 3.5% as expected.
- US: International trade deficit rose to $77.2 billion in October from $76.3 billion in September.
The US Dollar Index, which climbed to a fresh 2-week high at 97.53 earlier in the day, was also at 97.37 as of writing. Later in the day, Fed Chairman Jerome Powell's speech will be looked upon for fresh impetus.
Technical levels to consider
The pair could meet the first technical support at 0.9970 (50-DMA) ahead of 0.9910 (Nov. 20 low) and 0.9875 (100-DMA). On the upside, resistances are located at 1.0000 (psychological level/parity), 1.0085 (Nov. 16 high) and 1.0130 (Nov. 13 high).