- The USD / CHF rebounds after falling 0.9650 earlier in the day.
- Risk aversion in the US session allowed the USD to strengthen against its rivals.
- Investors await speech by FOMC President Jerome Powell on the economy.
The USD / CHF fell to its lowest level in more than two weeks at 0.9638 on Wednesday and spent the first half of the day moving sideways near 0.9650 on Thursday.
The USD capitalizes on the feeling of risk of overbidding
However, with risky flows boosting the greenback during the US session, the pair turned north and wiped out most of Wednesday’s losses. At the time of writing, the pair was up 0.55% on the day at 0.9703.
Although better-than-expected preliminary PMI Markit Manufacturing data from the United States drove the US dollar index down to 99, concerns over a protracted US-China conflict have prompted a change in ‘mood.
Several media have reported that Chinese officials have said that China will respond if the United States imposes sanctions related to the coronavirus. The main Wall Street indices fell sharply on this development and the dollar strengthened against its rivals. At the time of writing, the US dollar index was up 0.2% on the day at 99.36.
At the end of the hour, at 6.30 p.m. GMT, FOMC President Jerome Powell will deliver his prepared remarks on the current state of the economy and the coronavirus crisis.