USD/CHF prints fresh highs above 0.9930 on US data and trade deal optimism
|- US Dollar accelerates recovery after US ISM non-manufacturing shows significant recovery.
- USD/CHF up more than fifty pips for the day, the best performance in over a month.
The USD/CHF pair continued to rise after the beginning of the American session and peaked at 0.9933, the highest level since last Wednesday. It is moving with a bullish bias since yesterday.
Trade deal optimism and USD strength
Earlier today, safe-haven currencies including the Swiss Franc weakened amid optimism surrounding US-China trade deal negotiations. More recently US data added more fuel to the rally of the Greenback that was already supported by higher yields.
The US ISM non-manufacturing index came in at 54.7 above the 53.5 expected and on top of the previous reading of 52.5. “The ISM non-manufacturing index rose a little more than predicted in October and fits with the narrative of a Fed pause at the December FOMC meeting,” explained ING analysts.
Levels to watch
The USD/CHF has risen 80 pips since the beginning of the week and is back above the 20-day moving average that stands at 0.9910, now a support area. On the upside, the critical level might be seen at 0.9950: a daily close clearly on top would clear the way to more gains and to a potential test of 0.9990.
On the flip side, as mentioned 0.9910 is a relevant support, below the bullish pressure will ease. The next support levels might be seen at 0.9890 and 0.9865.
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