USD/CHF recovers further from 2-week lows, inching closer to mid-0.9600s
|- USD/CHF gained traction for the second consecutive session on Tuesday.
- Improving risk sentiment weighed on the CHF’s perceived safe-haven status.
- The USD added to the overnight gains and remained supportive of the uptick.
The USD/CHF pair edged higher through the early European session and is currently placed near the top end of its daily trading range, around the 0.9630 region.
A combination of supporting factors assisted the pair to gain some follow-through traction for the second consecutive session and recover further from near two-week lows, around the key 0.9500 psychological mark set on Monday.
A further recovery in the global risk sentiment, as depicted by a bullish tone around the equity markets, was seen as one of the key factors weighing on the Swiss franc's safe-haven status and remained supportive of the positive move.
Against the backdrop of the Fed's unlimited QE and a massive $2.2 trillion US economic stimulus package, a sharp rebound in Chinese manufacturing sector activity in March boosted investors' confidence and their appetite for riskier assets.
The risk-on mood was further reinforced by a goodish pickup in the US Treasury bond yields, which underpinned the US dollar and contributed to the pair's ongoing recovery move, which took along some short-term trading stops near the 0.9600 mark.
It will now be interesting to see if the pair is able to capitalize on the momentum or runs into some fresh supply at higher levels amid growing market concerns over the global economic fallout from the coronavirus pandemic.
Moving ahead, market participants now look forward to the US economic docket – featuring the release of Chicago PMI and Conference Board's Consumer Confidence index – in order to grab some short-term trading opportunities.
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.