USD/CHF sits near multi-month tops, around 0.9400 mark
|- USD/CHF maintained its bid tone for the fourth straight session on Friday.
- The risk-on mood undermined the safe-haven CHF and remained supportive.
- The USD consolidated its recent gains and failed to provide any additional lift.
The USD/CHF pair refreshed multi-month tops during the early European session, with bulls making a fresh attempt to build on the momentum beyond the 0.9400 mark.
The pair added to its strong weekly gains and edged higher for the fourth consecutive session on Friday. A generally positive tone around the equity markets underpinned the safe-haven Swiss franc and was seen as a key factor lending some support to the USD/CHF pair.
On the other hand, the US dollar was seen consolidating its recent strong gains to four-month tops. A subdued USD price action failed to provide any additional boost to the USD/CHF pair and might hold bullish traders from placing aggressive bets, at least for now.
That said, the optimism over a relatively faster US economic recovery from the pandemic might continue to underpin the greenback. The brighter outlook was reinforced by better-than-expected US economic data released on Thursday – Q4 GDP and Initial Jobless Claims.
Adding to the optimism, US President Joe Biden – in his first formal news conference on Thursday – made an ambitious pledge of administering 200 million vaccine shots in 100 days. Apart from this, a modest pickup in the US Treasury bond yields could also lend support to the buck.
This, in turn, supports prospects for an extension of the USD/CHF pair's upward trajectory witnessed over the past three months or so. Hence, any meaningful dip might still be seen as an opportunity for bullish traders and is more likely to remain limited.
Market participants now look forward to the US economic docket, featuring the releases of Personal Income/Spending data, Core PCE Price Index and Michigan Consumer Sentiment index. This, along with the US bond yields, might influence the USD and provide some impetus to the USD/CHF pair.
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.