USD/CHF jumps back closer to near 2-week tops, above mid-0.9900s
|- A modest pickup in the USD demand helped regain some traction.
- Bulls seemed rather unaffected by the prevalent cautious mood.
- Sliding US bond yields might hinder the USD uptick and cap gains.
The USD/CHF pair spiked to fresh session tops, around the 0.9960-65 region in the last hour, with bulls making a fresh attempt to build on the momentum further beyond the very important 200-day SMA.
Following the previous session's good two-way price swings, the pair managed to regain some positive traction and was being supported by a goodish pickup in the US Dollar demand. The incoming positive trade-related headlines reinforced prospects for a partial US-China trade deal and extended some support to the Greenback.
Focus remains on FOMC
Meanwhile, the intraday uptick seemed rather unaffected by a slightly softer tilt in the global risk mood, which tends to underpin the Swiss Franc's perceived safe-haven status. The USD bulls also shrugged off a sharp intraday slide in the US Treasury bond yields, albeit might turn out to be the only factor capping further gains.
Moving ahead, Tuesday's US economic docket – highlighting the release of the Conference Board's Consumer Confidence Index and pending home sales data – will be looked upon for some short-term trading impetus later during the early North-American session.
The key focus, however, will remain on the outcome of a highly anticipated FOMC meeting, starting this Tuesday. The Fed is scheduled to announce its policy decision during the US session on Wednesday, which will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.