USD/CHF clings to gains near 0.9200 mark, Powell’s testimony awaited


  • USD/CHF regained positive traction on Tuesday and inched back closer to two-month tops.
  • The Fed’s hawkish turn, an uptick in the US bond yields continued underpinning the USD.
  • A generally positive risk tone undermined the safe-haven CHF and remained supportive.

The USD/CHF pair held on to its modest intraday gains through the mid-European session, with bulls now awaiting a sustained move beyond the 0.9200 round-figure mark.

Following the previous day's modest pullback from over two-month tops, the USD/CHF pair managed to regain positive traction on Tuesday and was supported by a combination of factors. The Fed's sudden hawkish shift last week continued acting as a tailwind for the US dollar. Apart from this, a generally positive tone around the equity markets undermined the safe-haven Swiss franc and provided a modest lift to the major.

It is worth recalling that the Fed surprised investors at the end of June policy meeting and brought forward its timetable for the first post-pandemic interest rate hikes. The so-called dot plot pointed to two rate hikes by the end of 2023 as against policymakers’ projection for no increase until 2024 in the March meeting. This, along with a modest uptick in the US Treasury bond yields, further extended some support to the USD.

St. Louis Fed President James Bullard said on Monday that the Fed should be prepared for inflation to surprise on the high end through next year. Adding to this, the Fed Chair Jerome Powell – in prepared testimony for the congressional hearing – also highlighted the risk of rising inflation pressures. This, in turn, pushed the yield on the benchmark 10-year US government bond back above the 1.50% threshold on Tuesday.

Hence, the key focus will remain on the Fed Chair Jerome Powell's testimony before the House Select Subcommittee on the Coronavirus Crisis. Powell's remarks will be looked upon for fresh clues about the policy outlook and infuse some volatility in the markets. In the meantime, the US economic docket – featuring the second-tier releases of Existing Home Sales and Richmond Manufacturing Index – might provide some impetus to the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price 0.92
Today Daily Change 0.0022
Today Daily Change % 0.24
Today daily open 0.9178
 
Trends
Daily SMA20 0.9017
Daily SMA50 0.9065
Daily SMA100 0.9122
Daily SMA200 0.907
 
Levels
Previous Daily High 0.9237
Previous Daily Low 0.9175
Previous Weekly High 0.9239
Previous Weekly Low 0.8966
Previous Monthly High 0.9165
Previous Monthly Low 0.893
Daily Fibonacci 38.2% 0.9199
Daily Fibonacci 61.8% 0.9214
Daily Pivot Point S1 0.9157
Daily Pivot Point S2 0.9135
Daily Pivot Point S3 0.9095
Daily Pivot Point R1 0.9219
Daily Pivot Point R2 0.9259
Daily Pivot Point R3 0.928

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.

EUR/USD News

GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.

GBP/USD News

XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more

Forex MAJORS

Cryptocurrencies

Signatures