USD/CHF moves back closer to weekly tops set on Wednesday, comfortable above mid-0.9800s
- Speculations that SNB will cut interest rates further weighed on the CHF and helped regain traction.
- The USD stood tall near multi-week tops amid tempered Fed rate cut bets and remained supportive.
- Traders now look forward to the release of June US durable goods orders data for a fresh impetus.
The USD/CHF pair regained positive traction on Thursday and built on its recent bounce from the 0.9800 handle, near three-week lows set last week.
After a flat closing in the previous session, the pair caught some fresh bids during the Asian session on Thursday on speculations that the Swiss National Banks (SNB) will cut interest rates in response to an increasingly expansive mood at the European Central Bank (ECB).
In fact, money markets are pricing a 54% probability of SNB reducing its already deeply negative benchmark interest rate by another 25 bps, which coupled with the prevalent bullish sentiment surrounding the US Dollar provided a modest lift to the pair's ongoing recovery.
The greenback stood tall near multi-week tops amid tempered expectations for an aggressive monetary easing by the Fed and a positive trade-related development, wherein top US-China negotiators have been confirmed to resume in-person trade talks in Beijing on July 31-August 1.
Moving ahead, Thursday's US economic docket - highlighting the release of durable goods orders data for June, will influence the USD price dynamics and assist traders to grab some short-term opportunities later during the early North-American session.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
