- USD / CHF fails to meet Tuesday’s stop to a two-day winning streak.
- Global markets are showing caution ahead of the events of the Jackson Hole Symposium.
- The optimism of the trade deals, the hopes of a cure from the virus promote the mood of risk.
- Swiss Economic Survey ZEW, durable goods orders in the United States will be in the spotlight.
USD / CHF remains close to intraday high of 0.9085 during Wednesday morning session. In doing so, the pair is printing intraday gains of 0.06% while maintaining the previous day’s rebound at 0.9072.
While a lack of major data / events joins the mostly empty newsfeed to limit the pair’s immediate moves. In the same vein, there is also the expectation of the speech of the main central bank executives at the Jackson Hole Symposium.
However, sentiment among traders remains positive as government efforts in the UK and US raise hopes for an early recovery from the coronavirus (COVID-19). In addition, news the day before that the United States and China remain positive on the phase one deal reinforces the bullish mood in the market despite worrying US consumer confidence figures.
To illustrate the risk sentiment, 10-year US Treasury yields rise 1.3 basis points (bps) to 0.695% as the S&P 500 Futures remains sluggish around the all-time high of 3448.75 on Tuesday.
Further, Swiss ZEW Survey – Expectations for August, ahead of 42.4, may offer immediate direction to the pair ahead of US durable goods orders in July, expected at 4.3% from 7.6 % previously. Even so, traders shouldn’t expect a major change before Thursday’s US session unless surprises from the virus and / or the trading front emerge.
The 21 day SMA level of 0.9110 offers immediate resistance to the pair ahead of a three week old downtrend line, currently near 0.9132. Alternatively, sellers wait for a clear break below 0.9050 to renew their efforts to break the psychological magnet of 0.9000.