USD/CHF staged modest recovery from a one-month low amid resurgent USD demand.
The risk-off mood underpinned the safe-haven CHF and kept a lid on any further gains.
Investors look forward to the FOMC meeting minutes for a fresh directional impetus.
The USD/CHF pair held on to its modest gains through the early North American session and was last seen trading just a few pips below the daily high, around the 0.9620-0.9625 region.
The US dollar made a solid comeback and snapped a two-day losing streak to a nearly one-month low, which, in turn, assisted the USD/CHF pair to attract some buying on Wednesday. Repositioning trade ahead of the FOMC minutes turned out to be a key factor that prompted short-covering around the USD, which seemed unaffected by softer-than-expected US Durable Goods Orders data.
That said, the prevalent risk-off environment extended some support to the safe-haven Swiss franc and kept a lid on any meaningful upside for the USD/CHF pair. Investors remain worried that a more aggressive move by major central banks to constrain inflation, the Russia-Ukraine war and the latest COVID-19 outbreak in China would pose challenges to the global economy.
The worsening global economic outlook continued weighing on investors' sentiment, which was evident from a generally weaker tone around the equity markets. The anti-risk flow was reinforced by declining US Treasury bond yields. This might further hold back the USD bulls from placing aggressive bets and cap gains for the USD/CHF pair ahead of the key event risk.
Given that a 50 bps Fed rate hike move is fully priced in, market participants will look for clues about the possibility of a jumbo 75 bps rate hike in June. This will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus to the USD/CHF pair.
Technical levels to watch
|Today last price||0.9624|
|Today Daily Change||0.0019|
|Today Daily Change %||0.20|
|Today daily open||0.9605|
|Previous Daily High||0.967|
|Previous Daily Low||0.9574|
|Previous Weekly High||1.0064|
|Previous Weekly Low||0.9694|
|Previous Monthly High||0.9759|
|Previous Monthly Low||0.9221|
|Daily Fibonacci 38.2%||0.9611|
|Daily Fibonacci 61.8%||0.9633|
|Daily Pivot Point S1||0.9562|
|Daily Pivot Point S2||0.952|
|Daily Pivot Point S3||0.9466|
|Daily Pivot Point R1||0.9658|
|Daily Pivot Point R2||0.9712|
|Daily Pivot Point R3||0.9754|
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