- USD/CHF built on the overnight goodish bounce and gained some traction on Thursday.
- The USD remained well supported after Powell rejected the idea of negative interest rates.
- The cautious mood benefitted the safe-haven CHF and capped any strong gains for the pair.
The USD/CHF pair traded with a mild positive bias through the early European session, albeit lacked any strong follow-through buying and remained capped below weekly tops.
The pair edged higher on Thursday and built on the previous day's goodish intraday rebound of around 60 pips from the 0.9665 support zone, or one-week lows. The move-up came after the Fed Chair Jerome Powell rejected the idea of negative interest rates in the US, which helped revive the US dollar demand.
The greenback consolidated the overnight positive move and provide a modest lift to the major on Thursday. However, the cautious market mood – amid concerns about the second wave of coronavirus infections – benefitted the Swiss franc's safe-haven status and kept a lid on any further gains for the USD/CHF pair.
From a technical perspective, the pair has repeatedly faced rejection near the very important 200-day SMA. Meanwhile, the pullbacks have been able to attract decent dip-buying, which support prospects for additional gains. However, it will be prudent to wait for a sustained move beyond the 0.9800 mark to confirm the bullish bias.
The swissy was last seen trading near the 0.9725 region as market participants now look forward to the release of the US Initial Weekly Jobless Claims. The data might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North American session.
Technical levels to watch
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
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.