USD/CHF climbs to 3-day tops, closer to mid-0.9100s as traders eye NFP report


  • USD/CHF gains traction for the second straight day and recovers further from multi-year lows.
  • A goodish pickup in the USD demand prompted some short-covering move around the major.
  • A combination of factors might cap the recovery move ahead of the US monthly jobs report.

The USD/CHF pair edged higher through the early European session and climbed to three-day tops, around the 0.9140 region in the last hour.

The pair managed to catch some fresh bids on the last day of the week and built on its modest bounce from mid-0.9000s – the lowest level since January 2015 set on Wednesday. A goodish pickup in the US dollar demand was seen as a key factor behind the USD/CHF pair's short-covering move, albeit a slight deterioration in the global risk sentiment might keep a lid on any strong gains.

Concerns over a further escalation in the US-China tensions resurfaced after the US President Donald Trump signed executive orders banning US transactions with Chinese companies that own TikTok and WeChat. The development dented investors appetite for perceived riskier assets – like equities – and might extend some support to the Swiss franc's safe-haven status.

Meanwhile, the anti-risk flow dragged the yield on the benchmark 10-year US government bond back closer to an all-time closing low level of 0.501%. This comes on the back of doubts over the pace of the economic recovery amid the ever-increasing coronavirus cases. Adding to this, the political stalemate over the next round of the US fiscal stimulus might hold the USD bulls from placing aggressive bets and cap the upside for the USD/CHF pair.

Investors might also prefer to stay on the sidelines ahead of Friday's important release of the closely watched US monthly jobs report, popularly known as NFP. This makes it prudent to wait for some strong follow-through buying before confirming that the pair might have bottomed out in the near-term and positioning for any further near-term appreciating move.

The US economy is expected to have added 1.6 million jobs in July and the unemployment rate is anticipated to drop to 10.5% from the 11.1% previous. Even a slight miss will be enough to fuel worries that the US labour market recovery was faltering and prompt some fresh USD selling, which should force the USD/CHF pair to resume its well-established bearish trend. 

Technical levels to watch

USD/CHF

Overview
Today last price 0.9136
Today Daily Change 0.0039
Today Daily Change % 0.43
Today daily open 0.9097
 
Trends
Daily SMA20 0.926
Daily SMA50 0.9404
Daily SMA100 0.9553
Daily SMA200 0.9657
 
Levels
Previous Daily High 0.9129
Previous Daily Low 0.9066
Previous Weekly High 0.923
Previous Weekly Low 0.9056
Previous Monthly High 0.9494
Previous Monthly Low 0.9056
Daily Fibonacci 38.2% 0.9105
Daily Fibonacci 61.8% 0.909
Daily Pivot Point S1 0.9066
Daily Pivot Point S2 0.9034
Daily Pivot Point S3 0.9002
Daily Pivot Point R1 0.9129
Daily Pivot Point R2 0.9161
Daily Pivot Point R3 0.9192

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

GBP/USD resumes upside toward 1.3300 ahead of BoE rate call

GBP/USD resumes upside toward 1.3300 ahead of BoE rate call

The GBP/USD gains traction and approaches 1.3300 in European trading on Thursday, having found buyers near 1.3150. A broad US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements. 

GBP/USD News
EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD stays strongly bid toward 1.1200 in the European session on Thursday. The pair capitalizes on a renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday. 

Gold News
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures