USD/CHF claiming 0.9700 handle amid USD buying wave

Higher bond yields and upbeat Fed members´ comments trigger renewed interest in the buck.
The US Dollar Index is now targetting the 90.00 handle.
USD/CHF bull trend is intact and the bulls now broke above the 0.9700 psychological level.

Flavio Tosti Independent Analyst

The USD/CHF is trading at around 0.9715 up 0.29% on Thursday as USD bulls hit the bid button across the board.

It was a quiet trading session on Thursday until a second wave of US dollar buying this week hit the market minutes before the European session came to an end. The first wave of buying was in the early European session on Tuesday and the US Dollar Index (DXY) made a sharp reversal from the 89.23 level that day. DXY is now trading close to 89.90 now eyeing the 90.00 mark.

Higher US bond yields and recent upbeat comments from Fed officials, in what was a busy week in terms of Fed speeches, prompted USD bulls to break the 89.50-89.60 range to the upside on the DXY.

While it is a pretty light calendar the next event coming up in the US Session is the speech of Loretta Mester, FOMC member, scheduled at 22:45 GMT.

On the larger scale of things, the Swiss National bank has no intention to raise interest rates any time soon while the market is broadly expecting three to four rate hikes in 2018 from the Federal Reserve, which explains the underlying bull trend in the pair.

USD/CHF 4- hour chart

The trend is bullish. Supports lie at 0.9650 and at 0.9577 swing lows while resistances are priced in at 0.9846 and 0.9977 swing highs.

Author

Flavio Tosti

Independent Analyst

GBP/USD clings to daily gains near 1.3350

GBP/USD holds just in positive territory around 1.3350 on Friday as the Greenback keeps a vacillating price action. With Fed rate hike expectations easing and US markets closed for the Independence Day holiday, Cable remains on track to post solid weekly gains.

EUR/USD remains sidelined around 1.1440

EUR/USD holds on to its recent gains and consolidates around 1.1440 at the end of the week as the US Dollar lacks clear direction. In the meantime, trading conditions remain subdued, with volatility constrained by the closure of US markets for the Independence Day holiday.

Gold flirts with two-week highs, targets $4,200

Gold extends its recovery for a third straight day, advancing toward the $4,200 mark per troy ounce on Friday. The precious metal looks set to snap a four-week losing streak as softer-than-expected June US NFP data prompt investors to scale back expectations of further Fed tightening.

Crypto Today: Bitcoin, Ethereum, XRP advance amid renewed capital inflows

Bitcoin maintains its upward momentum, holding above the $61,000 mark at the time of writing on Friday. Major altcoins such as Ethereum and Ripple are also posting gains, signaling a modest uptick in market sentiment and renewed risk appetite among investors.

The Iran war failed to trigger a recession. Can the US economy keep defying expectations?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.