- The USD / CHF was built on the rebound overnight and gained ground on Thursday.
- The USD remained well supported after Powell rejected the idea of negative interest rates.
- The conservative mood benefited the safe haven and capped the pair’s solid gains.
USD / CHF traded with a slight positive bias throughout the first European session, although it did not make any solid follow-up purchases and remained capped below the weekly highs.
The pair rose slightly on Thursday and was supported by the intraday rebound of almost 60 pips from the day before from the support zone of 0.9665, or the lowest of a week. The movement occurred after the Fed President Jerome Powell rejected the idea of negative interest rates in the United States, which helped American dollar request.
The greenback consolidated the positive movement overnight and provided a major boost to the major on Thursday. However, the cautious mood of the market – amid concerns over the second wave of coronavirus infections – has benefited the safe haven status of the Swiss franc and kept a lid on any other gain for the USD / CHF pair.
From a technical point of view, the pair has repeatedly faced rejection near the very important 200-day SMA. Meanwhile, withdrawals have been able to attract decent purchases, which supports prospects for further earnings. However, it will be prudent to wait for a sustained movement beyond the 0.9800 mark to confirm the upside bias.
The swissy was last seen near the 0.9725 region as market players now eagerly await the release of initial jobless weekly claims in the United States. The data could influence the price dynamics in USD and generate significant trading opportunities later at the start of the North American session.