USD/CHF jumps back to 0.97 handle ahead of ADP report

Haresh Menghani FXStreet

The USD/CHF pair regained traction on Wednesday and moved back to the 0.9700 handle, recovered tepid losses recorded over the previous two trading sessions.

Diminishing demand for traditional safe-haven currencies, including the Swiss Franc, has been one of the key factors driving the pair higher on Wednesday. Even the prevalent cautious environment did little to lend support and stall the pair's up-move through early European trading session.

Meanwhile, the market seems to have largely ignored a softer tone surrounding the US Dollar led by continued US political uncertainty and concerns over softening US inflation, which might hold back the Fed from raising interest rates further in 2017.

Next on tap would be the release of ADP report on the US private sector employment, which would influence investors’ expectations from Friday's official NFP data and provide some fresh impetus during early NA session.

Technical levels to watch

On a sustained move back beyond the 0.9700 handle, the pair is likely to dart towards the 0.9730 region (Friday's high) before eventually aiming to test June monthly highs resistance near 0.9765-70 region. Alternatively, failure to clear the immediate hurdle, leading to a subsequent drop below the 0.9640-35 region, would turn the pair vulnerable to head back towards the 0.9600 handle.

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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.