USD/CHF extends daily rally toward 0.9120 as DXY climbs above 93.50
- USD/CHF is rising for the third straight day on Wednesday.
- US Dollar Index climbs to nine-day highs above 93.60.
- S&P 500 futures are down nearly 2% ahead of the opening bell.
After breaking above 0.9100 during the European trading hours, the USD/CHF preserved its bullish momentum and touched its highest level since October 19th at 0.9128. As of writing, the pair was up 0.4% on the day at 0.9122.
DXY rises for the third straight day
The broad-based USD strength remains the primary driver of USD/CHF's movements on Wednesday. The US Dollar Index (DXY), which posted small gains and closed above 93.00 on Tuesday, capitalized on safe-haven flows and climbed to its highest level in more than a week at 93.64. At the moment, the DXY is up 0.5% on the day at 93.55.
Reflecting the risk-averse market environment, the S&P 500 futures are down nearly 2% on the day, suggesting that Wall Street's main indexes look to start the day deep in the negative territory. Additionally, the 10-year US Treasury bond yield is losing more than 2%, confirming the view that safe-haven flows are likely to continue to dominate the markets.
Meanwhile, the only data from the US showed on Wednesday that the trade deficit in September narrowed $79.4 billion from $83.1 billion in August but was largely ignored by the market participants.
Technical levels to watch for