- A goodish pick-up in USD at the request of all, the pair USD/CHF to gain some traction on Thursday.
- The potential upside seems limited in the middle of the most soft feeling of risk and the worsening of US-China relations.
- Investors now look forward to the US macro versions for some of the short-term trading momentum.
The USD/CHF the pair is slightly higher at the start of the European session, and was last seen trading near the upper end of its daily trading range, around the 0.9665 area.
The pair has managed to regain a bit of positive traction on Thursday and recovered some of the previous day’s fall to near three-week lows. The improvement was supported by a stronger dollar, albeit of the softer risk tone is retained a member in a strong increase of the USD/CHF currency pair.
As investors digested Wednesday’s dovish-sounding FOMC minutes, the usd has attracted some dip-buying, Thursday and recovered some of its recent losses. A modest recovery of the USD, the demand has been considered as one of the key factors lending some support to the major.
Meanwhile, concerns about worsening US-China relations have weighed on investor sentiment. It was evident from the weakening of the bargaining in action all around us in the global equity markets, which extended support for the Swiss franc is perceived safe-haven status, and capped the rise.
From a technical point of view, the overnight break below the 0.9700 mark, and a drop below the 50-day SMA, and could have changed the short term bias in favor, or don’t want. However, it will be prudent to wait for some follow-through selling, before placing the fresh bearish bets.
Going forward, market participants look forward to the release of the Manufacturing Index of the Philadelphia Fed, Initial Weekly Jobless claims and the Flash Manufacturing PMI in the united states. In the united states, the macro data can affect the price in dollars of the dynamics and produce trading opportunities and when, later, at the beginning of the North American session.