USD/CAD, USD/CHF rally on strong US data boosting dollar recovery hopes

USD/CAD surged 0.5% to 1.3580 while USD/CHF climbed 0.4% to 0.8920 as robust US economic data sparked renewed dollar strength. US retail sales exceeded expectations, rising 0.7% month-over-month versus 0.4% forecast, indicating resilient consumer spending despite elevated interest rates. The upbeat data reinforced expectations that the Federal Reserve may maintain its hawkish stance longer than previously anticipated. USD/CAD broke above the key 1.3550 resistance level, targeting 1.3600 next, while USD/CHF cleared 0.8900 resistance with momentum building toward 0.8950. The dollar index gained 0.6% to 103.20, recovering from recent lows. Both pairs are benefiting from risk-off sentiment as traders reduce exposure to commodity currencies. Technical indicators suggest further upside potential if US economic resilience continues. Key support levels stand at 1.3520 for USD/CAD and 0.8880 for USD/CHF.