USD/CHF close to 2-week highs on stronger USD and risk-on trade

• USD/CHF is mainly driven by the current sentiment on markets and renewed interest in the US dollar.

• The swissy is now trading close to 2-week highs about 20 pips away from its 200-period simple moving average.

The USD/CHF is trading at around 0.9646 up 0.49% on Tuesday as the US dollar bulls took the lead in the European session. 

Freshly released, the US Industrial Production came in better than anticipated and rose to 0.5% in March. The Capacity Utilization data also came in better-than-expected at 78% in March.

Four Fed’s officials' speeches are slated on the US calendar on Tuesday and the next one coming up is the one of Randal Quarles, Federal Reserve Governor, who is set to testify on supervision and regulation before the House Financial Services Committee at 14:00 GMT in Washington DC. 

The US dollar is having a rebound on Tuesday after traders are slowly digesting the geopolitical tensions. The US-led airstrike on Syria over the weekend was considered a one-time event and not the start of a new war. The market then started to wonder what would the Russian's reaction to the attack be and also if there would be further sanctions on Russia from the US. As of now, the White House has put on hold sanctions on Moscow and traders are now focusing their attention on the earnings season. The three main US  indices (the S&P 500, the Dow Jones and the Nasdaq) are gaining some positive traction following Monday’s bull move as the risk-on mood is back on the table.

USD/CHF daily chart

The pair is facing resistance at 0.9658 with the daily 200-period simple moving average. A break above can lead to 0.97 figure. While a failure at the 0.9658 resistance can lead to a retest of the 0.96 figure and then 0.9533 swing low.