USD/CHF moving sideways above 0.9800 as holiday mood takes over

• Market activity remains subdued ahead of Christmas holiday.
• US Dollar Index remains directionless near 97.70 on Tuesday.
• Richmond Fed Manufacturing Index data unlikely to trigger market reaction.

The USD/CHF pair registered small daily gains on Monday and has gone into a consolidation phase on Tuesday as markets seem to be in the holiday mood already. As of writing, the pair was flat on the day at 0.9817.

USD/CHF likely to extend sideways grind

The Federal Reserve Bank of Richmond's Manufacturing Survey will be featured in the US economic docket later in the day but investors are unlikely to pay attention to this data. Ahead of this data, the US Dollar Index is moving sideways near the 97.70 handle.

In the meantime, Wall Street and the bond market will be both open on Christmas eve but will close early, suggesting that they are unlikely to help the pair to find direction by reflecting the market sentiment. 

On Friday, the ZEW's Expectation Index from Switzerland, which is expected to fall to -8.5 in December from -3.9 in November, will be featured in the economic docket.

Technical levels to watch for