USD/CHF consolidates last week's gains below 0.9800

• European equity indexes start week on back foot.
• US Dollar Index stays calm following last week's rally.
• Coming up: Speech by Fed Governor Michelle Bowman.

Supported by the USD's impressive performance, the USD/CHF pair added more than 100 pips last week and closed at its highest level of 2020 at 0.9782. With the market action staying subdued on Monday, the pair seems to have gone into a consolidation phase and was last seen trading at 0.9775, where it was down 0.04% on the day.

Investors stay on edge at the start of the week amid worries over China having difficulties containing the coronavirus outbreak. Reflecting the risk-off mood, major European equity indexes are down between 0.4% and 0.5%. Additionally, the 10-year US Treasury bond yield is erasing nearly 2%.

DXY stays above 98.60

On the other hand, the US Dollar Index (DXY), which rose 1.4% on the back of upbeat macroeconomic data releases last week, stays relatively quiet to help the pair continue to fluctuate in its tight range. As of writing, the index is down 0.07% on the day at 98.63

The US economic docket won't be featuring any significant data on Monday and markets will be watching Fed Governor Michelle Dowman's speech for clues regarding the Fed's policy outlook. 

Technical levels to watch for