USD/CHF consolidates around 0.9070 after bouncing up from 0.9030
|- US dollar recovery from 0.9030 stalls at 0.9070 area.
- The dollar trims losses favoured by higher safe-haven demand
- Greenback's recovery loses steam as risk aversion eases.
The USD/CHF has bounced up from 0.9030 lows against the Swiss Franc, favoured by stronger US dollar demand to reach 0.9080 before consolidating around 0.9070 on the late US trading session.
US dollar picks up amid a negative market sentiment
Greenback’s reversal from 0.9165 highs earlier this week was contained right above the 0.9000 psychological level on Wednesday and the pair managed to put an end to a three-day losing streak buoyed by safe-haven demand as risk sentiment soured.
Investors’ optimism about a fiscal stimulus deal before the US Presidential Elections were crushed by Trump’s comments on Thursday blaming the Democrats for not willing to craft an acceptable agreement. This hammered appetite for risk and boosted the US dollar comeback with the Dollar Index bouncing back from seven-week highs.
USD recovery lost steam during the late North American trading session, with equity markets popping into positive territory and risk aversion easing somewhat after US House of Representatives’ Speaker, Nancy Pelosi reported some progress on the negotiations and suggested that an agreement might be reached “pretty soon”.
On the macroeconomic domain, the US jobless data contributed to easing risk aversion. The Weekly Jobless Claims data posted a larger than expected decline, with 787k last week, well below the 860K market consensus, while the previous week's reading was revised down to 842K from the 898K claims previously reported.
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