USD/CHF clings to gains above 0.9700 mark, US data eyed for fresh impetus

USD/CHF gains positive traction for the third consecutive session on Wednesday.
Optimism over coronavirus treatment triggered a fresh wave of global risk-on trade.
The USD benefitted from surging US bond yields and remained support ahead of data.

Haresh Menghani FXStreet

The USD/CHF pair surged through the 0.9700 round-figure mark and climbed to near one-week tops in the last hour, albeit retreated few pips thereafter.

The pair gained some follow-through traction for the third consecutive session on Wednesday and added to its recent positive move amid weakening demand for traditional safe-haven assets. Some positive developments in the coronavirus saga triggered a fresh wave of the global risk-on rally, which dented the Swiss franc's perceived safe-haven status.

USD/CHF supported by risk-on mood/stronger USD

Investors' confidence got a strong boost on Thursday after Sky News reported that UK scientists have made a 'significant breakthrough' in the development of a vaccine for coronavirus. Adding to this, news on Chinese television said that the research team at Zhejiang University has found an effective drug to treat people with the new coronavirus.

The risk-on mood was further reinforced by a strong intraday pickup in the US Treasury bond yields, which assisted the US dollar to build on its recent positive move and remained supportive of the pair’s goodish intraday uptick of around 50 pips.

The latest optimism showed little signs of fading after WHO spokesman said that there is no known effective therapeutics against this coronavirus, albeit turned out to be one of the key factors that kept a lid on any subsequent positive move.

Moving ahead, market participants now look forward to the US economic docket – featuring the release of the ADP report on private-sector employment and ISM Non-Manufacturing PMI – in order to grab some short-term trading opportunities.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9721
Today Daily Change	0.0031
Today Daily Change %	0.32
Today daily open	0.969

Trends
Daily SMA20	0.9692
Daily SMA50	0.9768
Daily SMA100	0.9847
Daily SMA200	0.988

Levels
Previous Daily High	0.9705
Previous Daily Low	0.9653
Previous Weekly High	0.9768
Previous Weekly Low	0.9629
Previous Monthly High	0.9768
Previous Monthly Low	0.9613
Daily Fibonacci 38.2%	0.9685
Daily Fibonacci 61.8%	0.9673
Daily Pivot Point S1	0.966
Daily Pivot Point S2	0.9631
Daily Pivot Point S3	0.9608
Daily Pivot Point R1	0.9712
Daily Pivot Point R2	0.9735
Daily Pivot Point R3	0.9764

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD holds losses below 1.3400 amid escalating US-Iran tensions

GBP/USD finds some support near 1.3370 after a modest gap-down opening, though it lacks bullish conviction and remains below 1.3400. The pair suffers from a return of haven demand for the US Dollar amid renewed US-Iran military attacks and the resultant closure of the Strait of Hormuz. All eyes remain on Mideast updates and central bank talks.

EUR/USD battles 1.1400 amid USD strength, Iran risks

EUR/USD stays defensively close to 1.1400 in European trading on Monday. The pair faces headwinds as the US Dollar starts the week on a strong note on increased safe-haven appeal, following the weekend escalation between the US and Iran. However, hawkish ECB expectations limit the major's downside ahead of speeches from the Fed and ECB policymakers.

Gold seems vulnerable amid Iran risks reviving inflation fears, Fed hike bets

Gold maintains its offered tone through the Asian session, and currently trades just above $4,050, down nearly 1.40% for the day. A further escalation of tensions between the US and Iran, along with the closure of the Strait of Hormuz, lifts crude oil prices and revives inflation fears. This, in turn, bolsters expectations of higher interest rates by the US Federal Reserve, which benefits the safe-haven US Dollar, and drives flows away from the bullion.

Cardano: Ongoing whale accumulation fails to halt downward correction

Cardano (ADA) extends its losses, trading below $$0.160 after falling over 14% in the previous week. Despite on-chain data showing continued accumulation by whales, the buying activity has failed to lift prices. Meanwhile, bearish derivatives metrics and a weakening technical outlook indicate further downside for ADA.

The US won't default on $39 trillion debt: Why financial repression is coming and Gold is the only hedge

As the US national debt surges past $39 trillion, policymakers face an unsustainable economic trajectory that threatens the global financial system. With a formal default out of the question and fiscal austerity politically unfeasible, the US government is increasingly likely to rely on financial repression, artificially keeping interest rates below inflation to erode the real value of its debt.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.