USD/CHF approaching 200-DMA amid broad-based USD strength

Eren Sengezer FXStreet

After an initial drop to 0.9830 at the opening of the NA session, the USD/CHF leaped above 0.99 amid broad based buying interest surrounding the greenback, finally filling the bearish weekly opening gap. As of writing, the pair was trading at 0.9930, recording a 0.75% advance on the day.

Risk-on

Wall Street seems to have shaken off the healthcare voting outcome as major US stock indexes are moving to levels seen before that event took place. Both the Dow Jones Industrial Average and S&P 500 are gaining more than 0.8% on Tuesday, allowing risk appetite to re-emerge and the investors to move away from the safe-haven CHF. Furthermore, the U.S.10-Year bond yield is up 1.8% at 2.42%, giving the greenback an additional boost. At the moment the US Dollar Index is up 0.55% at 99.60.

SNB Governing Board member Andrea Maechler's comments were largely ignored as she once again reiterated that the CHF was overvalued and the SNB would continue to intervene on a need-be basis. On the other hand, Dallas Fed's President Robert Kaplan didn't offer anything surprising as he argued that raising rates aggressively would bump the economy into a slowdown.

Technical outlook

With a break above 0.9945 (200-DMA), the pair could aim for 1.0000 (psychological level) and 1.0075 (100-DMA). On the downside, the first support might be seen at 0.99 (psychological level) followed by 0.9830 (daily low) and 0.9810 (Mar. 27 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.