USD/CHF surrenders early modest gains, retreats back to 0.9400 mark
|- A combination of factors failed to assist USD/CHF to capitalize on its early uptick to multi-day tops.
- Concerns about rising COVID-19 cases benefitted the safe-haven CHF and capped gains for the pair.
- A fresh leg down in the US bond yields undermined the USD and did little to impress bullish traders.
The USD/CHF pair surrendered a major part of its early gains to three-day tops and is currently placed in the neutral territory, around the 0.9400 round-figure mark.
The pair built on the previous day's modest bounce from near four-month lows and gained some traction on the last day of the week. Bulls held on to the gains through the early North American session, albeit struggled to capitalize on the move amid concerns about the ever-increasing coronavirus cases.
The US reported a record jump of over 60,000 new coronavirus cases on Thursday and dashed hopes for a sharp V-shaped global economic recovery. This, in turn, took its toll on the global risk sentiment, which benefitted the safe-haven Swiss franc and capped the upside for the USD/CHF pair.
On the other hand, the US dollar failed to preserve its early modest gains, rather met with some fresh supply and was being weighed down by the risk-off mood-led downfall in the US Treasury bond yields. This, in turn, was seen as a key factor behind the pair's downtick over the past hour or so.
It will now be interesting to see if the intraday pullback marks the resumption of the recent bearish trend or the USD/CHF pair is able to attract any dip-buying. Nevertheless, the pair remains on track to post the fifth consecutive week of losses, though might still be able to close above the 0.9400 mark.
Technical levels to watch
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