USD/CHF jumps back closer to two-month tops

Haresh Menghani FXStreet

• Resurgent USD demand helps regain positive traction.
• Rising US bond yields/risk-on mood supportive of the up-move.
• The key FOMC decision would help determine the near-term trajectory.

The USD/CHF pair caught some fresh bids on Tuesday and has now moved back within striking distance of near two-month tops touched yesterday.

The pair continues to find some dip-buying interest near the key 0.9500 psychological mark and gained some fresh traction on the back of resurgent US Dollar demand, supported by a goodish pickup in the US Treasury bond yields.

Adding to this, a slight improvement in investors' appetite for riskier assets, as depicted by a positive trading sentiment around European equity markets, was seen denting the Swiss franc's safe-haven appeal and further collaborated to the latest leg of up-move.

Meanwhile, the market seems to have largely negated the State Secretariat for Economic Affairs (SECO's) latest Swiss quarterly economic forecasts, upgrading 2018 Swiss GDP to 2.4%, which did little to prompt any fresh selling, with the USD price dynamics acting as an exclusive driver of the pair's bullish momentum on Tuesday.

Moving ahead, the highly anticipated FOMC decision and the updated economic projections/'dot plot' would now be looked upon and should play an important role in determining the pair's next leg of a directional move.

Technical levels to watch

A follow-through up-move beyond mid-0.9500s has the potential to continue lifting the pair further towards 0.9575 intermediate resistance en-route the 0.9600 handle. On the flip side, the 0.95 mark now seems to have emerged as an immediate support, which if broken might prompt some additional weakness back towards 0.9440-35 support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.