USD/CHF sits near daily tops, comfortably above mid-0.9000s
|- A goodish pickup in the USD demand assisted USD/CHF to gain traction on Thursday.
- The risk-off mood underpinned the safe-haven CHF and kept a lid on any strong gains.
The USD/CHF pair maintained its bid tone through the first half of the European session and was last seen trading near the top end of its daily range, around the 0.9070-75 region.
Following an early dip to the 0.9040 region, the pair managed to regain some positive traction on Thursday and for now seems to have snapped three consecutive days of the losing streak. The US dollar was back in demand amid fading optimism about a pre-election US stimulus package, which, in turn, was seen as a key factor that prompted some short-covering move around the USD/CHF pair.
House of Representatives Speaker Nancy Pelosi will continue discussions with the US Treasury Secretary Steven Mnuchin and remained optimistic about reaching a deal, though acknowledged that the measures might now pass before November 3. Moreover, investors doubt the ability of the US Congress to overcome strong opposition from Senate Republicans over a bigger stimulus bill.
Meanwhile, the US President Donald Trump accused Democrats of being unwilling to craft an acceptable compromise on stimulus. The slow progress over a potential new US fiscal package took its toll on the global risk sentiment. This was evident from a fresh leg down in the equity markets, which underpinned the safe-haven Swiss franc and kept a lid on any strong gains for the USD/CHF pair.
Apart from developments surrounding the US stimulus measures, traders on Thursday will take cues from the final presidential debate between Trump and his Democratic rival Joe Biden. In the meantime, the release of the usual Initial Weekly Jobless Claims data, along with the broader market risk sentiment will be looked upon for some short-term trading opportunities.
Technical levels to watch
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