USD/CHF bounces from trend-line support on trade news

US/Sino trade teams will consult in mid-September with a view for a meeting in Washington in early October.
USD/CHF is currently trading 0.26% higher and bouning of trend-line support.

Ross J Burland FXStreet

The announcement that trade talks are back on track as given the markets the extra fuel needed to recover with respect to risk appetite. Currencies, such as the Yn and CHF, would otherwise benefit from investment, but in such a case that a trade deal could eventually emerge from the protracted negotiations is pressuring them in Asia today. USD/CHF is currently trading 0.26% higher and bouning of trend-line support.

Vice Premier Liu He who is the head Chinese trade negotiator has been reported to have spoken with Mnuchin and Lighthizer on Wednesday on a phone call and trade teams will consult in mid-September with a view for a meeting in Washington in early October.

Can the US/China finally make something happen?

However, it's hard to see a quick resolution considering the determination of Washington to stand firm on China when issues such as the violation of intellectual property rights, forced technology transfer and Chinese subsidies to state-owned enterprises have not been bridged - that is the sticking point and both nations are as stubborn as the other. Many observers expect China to wait it out to see if Trump loses the 2020 elections.

"In our view the escalation in trade tensions between the US and China is likely to cut around 0.6ppts from world growth through until 2021. This will have ramifications for risk appetite, risky assets and safe-haven demand,"

analysts at Rabobank argued.

USD/CHF levels

USD/CHF

Overview
Today last price	0.9836
Today Daily Change	0.0028
Today Daily Change %	0.29
Today daily open	0.9808

Trends
Daily SMA20	0.9799
Daily SMA50	0.9834
Daily SMA100	0.9939
Daily SMA200	0.9951

Levels
Previous Daily High	0.9885
Previous Daily Low	0.9797
Previous Weekly High	0.9919
Previous Weekly Low	0.9714
Previous Monthly High	0.9976
Previous Monthly Low	0.9659
Daily Fibonacci 38.2%	0.9831
Daily Fibonacci 61.8%	0.9851
Daily Pivot Point S1	0.9775
Daily Pivot Point S2	0.9742
Daily Pivot Point S3	0.9687
Daily Pivot Point R1	0.9863
Daily Pivot Point R2	0.9918
Daily Pivot Point R3	0.9951

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.