USD/CHF pullback from 0.9175 high, contained at 0.9125
- US dollar contained above 0.9115 after reaching levels near 0.9200.
- The greenback maintains its near-term bid-tone, coming up from five-year lows.
- Swiss franc suffers as hopes of a COVID-19 Cure boost risk appetite.
The US dollar remains positive for the second consecutive day against the Swiss franc as the pair’s intra-day reversal from 0.91.75 session high has found support at 0.9125.
Swiss franc dives on risk appetite
The greenback remains steady above 0.9100 after having appreciated about 1.8% over the last two days, coming up from five-year lows at 0.8980, fuelled by the risk rally triggered by news of a COVID-19 cure.
The promising results of Pfizer’s vaccine, revealing a 90% effectiveness have boosted appetite for risk on Monday, which hurt demand for safe-havens like the Swiss Franc or the Japanese yen. Furthermore, the sharp increase of the US Treasury Bond yields, which reached their highest level since March, provided further upside traction to the USD.
On the macroeconomic front, the US calendar has shown mixed figures. The NFIB Business Optimism Index has remained flat at 104 in October, against market expectations of deterioration to 102. while the JOLTS job openings increased to 6.436 million from 6.352 million in September, falling short of the 6.5 million market consensus. The impact of these figures, however, has been practically ignored by the market.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
