- USD/CHF attracts some dip buying near the 0.9600 mark, but lacked the follow-through.
- The optimism of the market mood, undermined the refuge of swiss francs and the scope of some support.
- The superior offered tone surrounding the USD capped any significant gains for the major.
The USD/CHF currency pair is updated on a daily basis in the tops, around the 0.9635 region, and in the last hour, but did not have a strong follow-up.
The pair quickly reversed an early European session dip to 0.9600 neighbourhood, and was now looking to build on the previous day’s intraday recovery, the move from two-month lows. “The easing or time restrictions in major economies raised hopes for a global economic recovery and boosted investors’ confidence.
The optimism of the market’s mood, as represented by the course of positive move across the global equity markets dented demand for the traditional safe-haven currencies, including the Swiss franc. – The CHF currency was further weakened by worse than expected Swiss GDP report, which showed that the economy contracted by 2.6% during the first quarter or the year 2020. Add to that, the GDP fell 1.3% year-on-year, compared to a growth of 0.9% was expected.
This, in turn, extended some support for the pair USD/CHF currency pair, but the most common, in US dollars, the sale of bias-kept a-point-on-the-attempted, then the move. The usd extended its fall for the seventh session in a row Thursday, and dragged the US Dollar Index to its lowest level since mid-March, around the 97.40 area.
A broad-based dollar weakness seems to be the only factor for portfolio investors to place bullish bets, and the limitation of the increase of the USD/CHF currency pair. Therefore, it would be prudent to wait for some strong follow-up of the purchase before you confirm that the pair may have hit bottom, and the positioning for any meaningful recovery to move. On the downside, the pair USD/CHF currency pair has shown some resilience below the 0.9600 mark, also justify a degree of caution for the traders bearish.
Going forward, market participants look forward to the US macro data for some of the short-term trading opportunities. Wednesday’s us economic docket highlights the publication of the ADP report on private-sector employment and the ISM Non-Manufacturing PMI, which can affect the price in dollars of the dynamics and provide a new impetus.