USD/CHF in search of a firm direction, confined in a range around 0.9800 mark
|- USD/CHF remains on the defensive amid reviving safe-haven demand.
- Sustained USD buying interest helped limit deeper losses, at least for now.
The USD/CHF pair quickly recovered around 15-20 pips from the early European session lows and is currently placed in the neutral territory, just above the 0.9800 round-figure mark.
The pair edged lower through the early part of Tuesday's trading action and retreated further from near two-month tops set in the previous session amid reviving safe-haven demand for the Swiss franc.
Traders refrain from placing aggressive bets
Worries over the economic impact of the deadly coronavirus outbreak resurfaced on Tuesday after Apple warned that it will be unable to meet its March quarter guidance due to iPhone production issues.
The warning from the most valuable company in the US dampened the latest optimism led by the PBoC’s stimulus measures on Monday and was enough to trigger a turnaround in the global risk sentiment.
However, sustained US dollar buying interest – despite a sharp intraday slide in the US Treasury bond yields –
helped offset the negative factors and turned out to be the only factor lending some support.
Moving ahead, market participants now look forward to a relatively thin US economic docket, highlighting the release of the Empire State Manufacturing Index, in order to grab some short-term opportunities.
Technical levels to watch
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