USD/CHF slides back closer to multi-week lows, near 1.0050 area
| • Reviving safe-haven demand underpins CHF and prompts some fresh selling on Wednesday.
• Sliding US bond yields keep the USD bulls on the defensive and do little to lend any support.
• Market participants now look forward to the US economic releases for some fresh impetus.
The USD/CHF pair met with some fresh supply on Wednesday and dropped back closer to four-week lows, around mid-1.0000s touched in the previous session.
The pair failed to capitalize on the overnight attempted bounce and traded with a bearish bias for the fourth session in the previous five. A sudden change in the risk sentiment provided a minor lift to the Swiss Franc's relative safe-haven status and helped sellers to regain control on Wednesday.
The prevailing cautious mood was further reinforced by a sharp intraday slide in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond was now down over 1%, which kept the US Dollar bulls on the defensive and did little to lend any support to the major.
Meanwhile, Wednesday's disappointing Chinese macro data now seems to have revived marked concerns about a global economic slowdown, which in turn further contributed to a rather cautious mood seen during the early European session on Wednesday.
Moving ahead, market participants now look forward to the US economic docket - highlighting the release of monthly retail sales figures, which along with Empire State Manufacturing Index and industrial production data, might produce some meaningful trading opportunities.
Technical levels to watch
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