USD/CHF eases from multi-week tops, flat-lined below 0.9800 mark
- USD/CHF failed to capitalize on the early uptick to seven-week tops.
- Bulls seemed rather unimpressed by the prevailing risk-on mood.
- Sustained USD buying also did little to provide any meaningful boost.
The USD/CHF pair failed to capitalize on its early uptick to seven-week tops and is currently placed in the neutral territory, around the 0.9775 region.
Despite the prevailing risk-on mood, which tends to undermine demand for perceived safe-haven currencies like the Swiss franc, the pair struggled to gain any meaningful traction. The pair was seen consolidating its recent strong gains and remained confined in a narrow trading band for the second consecutive session on Tuesday.
Traders refrained from placing fresh bets
Bullish traders seemed rather unimpressed by some follow-through buying interest surrounding the US dollar, which got an additional boost from a goodish intraday pickup in the US Treasury bond yields. Investors now seemed to prefer to wait on the sidelines ahead of the Fed Chair Jerome Powell's semiannual testimony before the Congress.
Powell comments will be closely scrutinized for fresh clues about the Fed's near-term monetary policy outlook. This will eventually play a key role in influencing the near-term USD price dynamics and help determine the pair's next leg of a directional move.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
