- Bulls fail to capitalize on the early uptick, despite a combination of supporting factors.
- The USD underpinned by tempered expectations for aggressive Fed rate cut in July.
- The positive mood around equities does little to impress the bulls or lend any support.
The USD/CHF pair dropped to fresh session lows in the last hour, back closer to near three-week lows set on Friday, with bears now eyeing a follow-through weakness below the 0.9800 handle.
The pair failed to capitalize on its early uptick to an intraday high level of 0.9841, rather met with some fresh supply and drifted lower through the mid-European session on Monday. The intraday downtick remained unaffected by a follow-through US Dollar uptick and largely shrugged off the prevalent positive mood around equity markets.
The greenback continued gaining some follow-through traction on the back of tempered expectations for a 50 bps Fed rate cut, especially after St. Louis Fed President James Bullard on Friday said that the current US economic condition doesn't warrant a larger cut.
Meanwhile, improving global risk sentiment – as depicted by modest gains across European equities and which tends to undermine demand for the Swiss Franc’s safe-haven demand, also did little to impress the bulls or provide any meaningful impetus to the major.
Despite the pullback, the pair has managed to hold its neck just above the 0.9800 handle. In absence of any major market-moving economic releases, the pair seems more likely to consolidate in a range as investors look forward to the highly anticipated FOMC monetary policy meeting on July 30-31.
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 price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
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.