USD/CHF clings to gains near session tops, just below mid-0.9200s
|- USD/CHF caught some fresh bids on Wednesday and snapped two days of the losing streak.
- A strong pickup in the USD demand was seen as a key factor behind the pair’s positive move.
- Bulls seemed rather unaffected by weaker risk sentiment, which benefits the safe-haven CHF.
The USD buying interest picked up pace during the early European session and pushed the USD/CHF pair to daily tops, around the 0.9235-40 region in the last hour.
The pair showed some resilience below the 0.9200 level, instead caught some fresh bids on Wednesday and for now, seems to have stalled this week's retracement slide from the vicinity of the 0.9300 mark. The emergence of some fresh buying around the US dollar was seen as one of the key factors driving the USD/CHF pair higher.
The first round of debate between the incumbent President Donald Trump and his rival from the Democratic Party Joe Biden featured a chaotic series of bitter exchanges. This was followed by Trump's warning that the election results could be delayed for months because of the mail-in ballots the next US president won’t be announced on November 3rd.
Trump's statement comes amid concerns about the ever-increasing coronavirus cases and added to the already uncertain environment. This, in turn, provided a goodish lift to the greenback's status as the global reserve currency and prompted some short-covering around the USD/CHF pair.
Meanwhile, a fresh wave of the global risk aversion trade – as depicted by a steep fall in the equity markets – did little to boost the Swiss franc's perceived safe-haven status or hinder the USD/CHF pair's intraday positive move.
Market participants now look forward to the US economic docket – highlighting the release of ADP report, the final Q2 GDP report, Chicago PMI and Pending Home Sales data. This, along with speeches by influential FOMC member will influence the USD price dynamics and produce some meaningful trading opportunities later during the North American session.
Technical levels to watch
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