USD/CHF tests 1.0100 ahead of US GDP data

• Improved market sentiment provides a boost to the pair.
• US Dollar Index clings to gains above 98.
• First-quarter GDP growth is expected to tick down to 3.1% in the U.S. 

After closing the first three days of the week in the positive territory, the USD/CHF pair extended its rally today and tested the 1.0100 handle for the second time this week. As of writing, the pair was trading at 1.0088, adding 0.07% on a daily basis.

Although USD bulls seem to be taking a break ahead of today's critical data releases from the U.S., the improved market sentiment helps the pair preserve its strength with the CFH struggling to find demand as a safe-haven. The 10-year US Treasury bond yield, which slumped to its lowest level since September 2017, staged an overdue correction today and was last seen adding 1.1% on the day. Moreover, following a drop to their lowest levels since February yesterday, major equity indexes in the U.S. look to open in the positive territory with the S&P 500 Futures rising 0.3%.

The U.S. Bureau of Economic Analysis will publish its second estimate of the first quarter GDP growth. Previewing the data, TD Securities analysts said that they were expecting the growth rate to be lowered to 3% from 3.2% announced in the first estimate. "This would leave Q1 growth sitting well above trend, although Q2 is shaping up to be softer with nowcasts from the NY and Atlanta Fed in the 1.3-1.4% range.” Ahead of the data, the US Dollar Index is flat on the day at 98.15.

Technical levels to watch for