USD/CHF advances to fresh daily highs near 0.9370 on renewed USD strength

• US Dollar Index extends recovery above 96 in American session.
• Wall Street's main indexes gain traction after falling into negative territory.
• Trump administration is reportedly considering a 90-day payroll tax suspension.

The USD/CHF pair retreated to 0.9300 area during the early trading hours of the American session but reversed its direction with the greenback preserving its strength. As of writing, the pair was up 1.3% on the day at 0.9370.

Stimulus hopes boost USD

Following a report claiming that the Trump administration was planning to offer a 90-day payroll tax suspension, the US Dollar Index (DXY) gained traction and broke above the 96 mark to reflect the USD's upbeat performance. Commenting on the matter, Republican Senator Rubio said the payroll tax cut being considered as coronavirus relief could be around $300 billion. As of writing, the DXY was up 1.35% on the day at 96.36.

Additionally, after starting the day more than 3% higher, Wall Street's main indexes slumped into the negative territory but turned north following these headlines to show a positive shift in the market mood. At the moment, the Dow Jones Industrial Average and the S&P 500 are both up more than 1% on the day. 

On Wednesday, the US economic docket will feature the Consumer Price Index data, which is expected to fall to 2.2% in February on a yearly basis from 2.5%.

Technical levels to watch for