- USD/CHF turned positive for the second straight day amid renewed USD buying interest.
- The Russia-Ukraine war benefitted the greenback’s status as the global reserve currency.
- Friday’s US macro releases might do little to influence or provide any impetus to the pair.
The USD/CHF pair held on to its modest intraday gains through the mid-European session and was last seen trading near the daily high, around the 0.9260 region.
Following the overnight pullback from the two-week high, the USD/CHF pair attracted fresh buying near the 0.9240-0.9235 region on Friday and was supported by reviving US dollar demand. The market sentiment remains jittery amid worries about the worsening situation in Ukraine. This, in turn, continued benefitting the greenback's status as the global reserve currency and acted as a tailwind for the major.
In the latest development, Ukrainian media reported Russian forces have entered the Obolon district, which is approximately 10 km from Kyiv - the capital city. Adding to this, gunfire was heard in Kyiv’s historic city centre. There were also mentions of Russian air missiles being spotted in the north of Kyiv. This, along with calls to disconnect Russia from the so-called SWIFT global payment system, kept investors on the edge.
This was seen as a key factor that pushed the USD/CHF pair into the positive territory for the second successive day - also the third in the previous four. Despite the intraday positive move of nearly 40 pips, spot prices remain well below the overnight swing high, warranting some caution before placing aggressive bullish bets. Nevertheless, the incoming geopolitical headlines will continue to play a key role in driving the pair.
Friday's economic docket highlights the release of the Fed's preferred inflation gauge - the Core PCE Price Index - and Durable Goods Orders, due during the early North American session. The data, however, might do little to influence the USD price dynamics or provide any meaningful impetus to the USD/CHF pair. Hence, the market focus will remain glued to fresh developments surrounding the Russia-Ukraine saga.
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 favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
Bitcoin price defends $60K as whales hold onto their BTC despite market dip
Bitcoin (BTC) price still has traders and investors at the edge of their seats as it slides further away from its all-time high (ATH) of $73,777. Some call it a shakeout meant to dispel the weak hands, while others see it as a buying opportunity.
Friday's Silver selloff may have actually been great news for silver bulls!
Silver endured a significant selloff last Friday. Was this another step forward in the bull market? This may seem counterintuitive, but GoldMoney founder James Turk thinks it was a positive sign for silver bulls.