USD/CHF sits near session tops, lacks follow-through beyond mid-0.9600s
|- Resurgent USD demand assisted USD/CHF to gain some positive traction on Monday.
- Deteriorating risk sentiment benefitted the CHF’s safe-haven status and capped gains.
The USD/CHF pair refreshed daily tops in the last hour, albeit lacked any strong follow-through buying beyond mid-0.9600s.
The pair gained some positive traction and built on the previous session's modest bounce from sub-0.9600 levels or one-month lows. The pair, for now, seems to have snapped three consecutive days of a winning streak and the uptick was led by a goodish pickup in the US dollar demand.
A US-China spat over the origin of the coronavirus added to persistent worries over the economic fallout from the pandemic-induced lockdowns. This, in turn, boosted the greenback's status as the global reserve currency and was seen as a key factor driving the pair higher.
Meanwhile, a further deterioration in the global risk sentiment, as depicted by a sea of red across the global equity markets, underpinned the Swiss franc's safe-haven demand and kept a lid on any additional gains for the major, at least for the time being.
There isn't any major market-moving economic data due for release from the US on Monday. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in producing some meaningful trading opportunities.
Moving ahead, this week's other important US macro data scheduled at the start of a new month, including the closely watched US monthly jobs report, will now be looked upon for a fresh directional impetus along with any further developments surrounding the coronavirus saga.
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.