USD/CHF slips below nine-week-old support ahead of Swiss trade data
|- Risk aversion keeps supporting the safe-havens, Swiss Franc (CHF) is among them.
- Doubts over the US-China trade deal grow amid political tension between the two.
- Swiss Trade Balance in the spotlight, Brexit/trade headlines remain as the key catalysts.
With increasing uncertainties over the global economic environment supporting traditional safe-havens, USD/CHF declines to a fresh one-week low of 0.9930 amid initial Thursday trading.
Among the key drivers of present risk-off mood, Brexit and the US-China trade headlines are occupying the top. Both phases show a lack of clarity over the crucial problems faced by the underlying economies and their impacts on global counterparts.
The European Union’s (EU) nearness to allow the Brexit deal to the United Kingdom (UK) is less likely to reduce hardships for the British Prime Minister (PM) Boris Johnson as Parliamentary approval in the short time becomes a tough game to play when there are many opponents, including some Tory rebels.
On the other hand, the US-China political tussle keeps growing. Initially, both the economies were at loggerheads over the Hong Kong issue while the United States’ (US) stipulations for the Chinese diplomats seem to be the latest argument point. In case of the trade deal, latest comments from the US Treasury Secretary mentions the wait for an invitation from the dragon nation to put forward some tensed topics.
Moving on, September month Trade Balance, 1,588M prior, becomes the immediate catalyst on the economic calendar to watch while keeping an eye over the trade/Brexit headlines.
Technical Analysis
Despite breaking a nine-week-old rising trend line, USD/CHF needs to break 100-day Exponential Moving Average (EMA) level of 0.9885 in order to visit late-September lows nearing 0.9845/40. During the pullback, prices can keep being on the back foot unless breaking 1.0000 mark on the daily closing basis.
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