USD/CHF jumps back closer to two-month tops
| • Resurgent USD demand helps regain positive traction.
• Rising US bond yields/risk-on mood supportive of the up-move.
• The key FOMC decision would help determine the near-term trajectory.
The USD/CHF pair caught some fresh bids on Tuesday and has now moved back within striking distance of near two-month tops touched yesterday.
The pair continues to find some dip-buying interest near the key 0.9500 psychological mark and gained some fresh traction on the back of resurgent US Dollar demand, supported by a goodish pickup in the US Treasury bond yields.
Adding to this, a slight improvement in investors' appetite for riskier assets, as depicted by a positive trading sentiment around European equity markets, was seen denting the Swiss franc's safe-haven appeal and further collaborated to the latest leg of up-move.
Meanwhile, the market seems to have largely negated the State Secretariat for Economic Affairs (SECO's) latest Swiss quarterly economic forecasts, upgrading 2018 Swiss GDP to 2.4%, which did little to prompt any fresh selling, with the USD price dynamics acting as an exclusive driver of the pair's bullish momentum on Tuesday.
Moving ahead, the highly anticipated FOMC decision and the updated economic projections/'dot plot' would now be looked upon and should play an important role in determining the pair's next leg of a directional move.
Technical levels to watch
A follow-through up-move beyond mid-0.9500s has the potential to continue lifting the pair further towards 0.9575 intermediate resistance en-route the 0.9600 handle. On the flip side, the 0.95 mark now seems to have emerged as an immediate support, which if broken might prompt some additional weakness back towards 0.9440-35 support area.
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