Forex traders will get key economic data out of the US in thin trading ahead of the New Year’s break, with many traders on extended holidays. The Chicago PMI is expected to confirm an ongoing contraction, supported by the Dallas Fed Manufacturing Activity Index. Economists do expect a rebound in pending home sales. The USDCHF is in a holding pattern inside of its horizontal support area. How will price action be impacted following the release of economic data? Today’s fundamental analysis will take a look at price action in both directions.

Swiss KOF Leading Indicator for December surprised to the upside but failed to inspire Swiss Franc bulls to add to the sell-off in the USDCHF. Many traders will wait until next week before committing to new positions. As a risk-off period may accompany the full return of traders, the Swiss Franc is anticipated to benefit. What impact will US data have on this currency pair later in today’s session? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.