USD/CHF sits at 3-week tops, above mid-0.9400s ahead of US data/Powell
| • Stronger USD helps gain traction for the fifth consecutive session.
• Better-than-expected Swiss GDP fails to stall the bullish move.
• US data/Powell’s testimony eyed for fresh impetus.
The USD/CHF pair continued gaining some positive traction through the mid-European session and has now risen to its highest level since early Feb.
Currently trading around 0.9460-65 band, the pair, so far, has held in positive territory for the fifth consecutive session and was being supported by the prevalent strong bullish sentiment surrounding the US Dollar.
The Fed Chair Jerome Powell's upbeat comments on the US economy, during his first congressional testimony, continues to underpin the greenback demand and has been one of the key factors behind the pair's steady climb of nearly 150-pips since last Friday.
Even the prevalent risk-off environment, further reinforced by sliding US Treasury bond yields and which tends to benefit the Swiss Franc's safe-haven appeal, did little to stall the pair's up-move.
Traders also seemed to have ignored today's slightly better y-o-y Swiss GDP growth figures, with the USD price dynamics acting as an exclusive driver of the pair's momentum ahead of Powell's second appearance before the Congress.
Meanwhile, the US economic docket, featuring the release of ISM manufacturing PMI, along with personal income/spending figures, Core PCE Price Index and the usual initial jobless claims, might also help traders grab some short-term opportunities.
Technical levels to watch
Momentum beyond 0.9470 level (Feb. 8 high) is likely to assist the pair to head back towards reclaiming the key 0.9500 psychological mark. On the flip side, 0.9435-30 area now seems to protect the immediate downside, below which the pair could slide back to test sub-0.9400 level.
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