- USD/CHF focuses more on China’s official PMI-led optimism that the US-China tussle.
- A few second-tier Swiss data can offer intermediate moves ahead of the US statistics.
- Trade/political news will continue driving the markets in the case of strong headlines.
With the most Asian markets up for Monday’s trading session, USD/CHF takes the bids to 1.0005 despite Axios conveying the news of delays in the US-China trade deal. The reason could be the underlying optimism offered through China’s official activity numbers.
Market’s risk sentiment has recently improved in a response to China’s November month official readings of Manufacturing Purchasing Managers’ Index (PMI). The key activity gauge rose to the highest since April and cleared 50.00 contraction figures for the first time after many months of below-50 levels.
On the contrary, Axios reports that the phase-one deal between the United States (US) and China may now come around the next year. The reasons cited are differences over tariff rollback, agricultural purchases and Hong Kong Act. A lack of response could be attributed to China’s silence and the nearness to data.
Risk tone seems to favor more to the China data as the US 10-year treasury yields gain more than three basis points (bps) to 1.87% while Japan’s NIKKEI and Australia’s ASX 200 marking 1.0% and 0.55% gains by the press time.
Investors will now focus on October month Swiss Real Retail Sales and November month SVME – PMI ahead of the US manufacturing PMIs from Markit and ISM. While forecasts suggest downbeat prints of the Swiss data, the expected recovery in the US economics can help extend the recent run-up.
Technical Analysis
October month high near 1.0030 can become immediate resistance ahead of May-end tops surrounding 1.0100. Alternatively, sellers will look for entry below November 08 high near 0.9980.
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
EUR/USD stabilizes near 1.0800 as trading action turns subdued
![EUR/USD stabilizes near 1.0800 as trading action turns subdued](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-9377516_XtraSmall.jpg)
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
![GBP/USD extends sideways grind above 1.2600](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/new-style-twenty-pound-notes-3079195_XtraSmall.jpg)
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
![Gold pulls away from daily highs, holds above $2,200](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/safe-investment-gm147311616-17537479_XtraSmall.jpg)
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
![XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/ripple_XtraSmall.jpg)
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
![Portfolio rebalancing and reflation trades emerge into Q2](https://editorial.fxstreet.com/images/TechnicalAnalysis/ChartPatterns/PointFigure/hand-pointing-graph-elements-of-this-image-furnished-by-nasa-76654497_XtraSmall.jpg)
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.