USD/CHF rebounds above 0.99 on recovering sentiment


  • Trump administration officials reportedly considered interim deal with China.
  • Wall Street stays in positive territory on Thursday.
  • US Dollar Index stays in red near 98.50.

The USD/CHF pair rose to a daily high of 0.9950 during the early trading hours of the American session as the heavy selling pressure surrounding the EUR allowed the Greenback to find demand. However, the pair struggled to preserve its momentum and slumped to a session low of 0.9883 before staging a modest recovery. At the moment, the pair was still down 0.15% on the day at 0.9910.

Volatility rises on ECB announcements

Earlier today, the European Central Bank announced that it cut the deposit facility rate by 10 basis points to -0.5% and introduced a new quantitative easing program at a monthly pace of €20 billion as from 1 November. The initial market reaction caused the shared currency to weaken against its major rivals and boosted the US Dollar Index (DXY). 

Later in the day, the DXY, which advanced to a 9-day high of 99.10, lost its traction as markets started to price in an aggressive policy move by the Federal Reserve next week following the ECB's policy decisions. At the moment, the index is down 0.17% on the day at 98.46.

Meanwhile, a Bloomberg report claiming that US President Donald Trump's advisers considered the option of offering China an interim trade deal to secure agricultural purchases and commitments on IP from China in exchange for delaying or even rolling back tariffs allowed risk-on flows to start dominating the market action and weighed on the safe-haven CHF. Although a senior White House official denied the report, the upbeat sentiment seems to be intact with major equity indexes in the US posting gains on the day.

Technical levels to watch for

USD/CHF

Overview
Today last price 0.991
Today Daily Change -0.0017
Today Daily Change % -0.17
Today daily open 0.9927
 
Trends
Daily SMA20 0.9841
Daily SMA50 0.9842
Daily SMA100 0.9925
Daily SMA200 0.995
Levels
Previous Daily High 0.9944
Previous Daily Low 0.9911
Previous Weekly High 0.993
Previous Weekly Low 0.9797
Previous Monthly High 0.9976
Previous Monthly Low 0.9659
Daily Fibonacci 38.2% 0.9931
Daily Fibonacci 61.8% 0.9924
Daily Pivot Point S1 0.9911
Daily Pivot Point S2 0.9894
Daily Pivot Point S3 0.9878
Daily Pivot Point R1 0.9944
Daily Pivot Point R2 0.996
Daily Pivot Point R3 0.9977

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading around 1.1050, confined to a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates by 25bps but signal no further stimulus is on the cards.

EUR/USD News

GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.

GBP/USD News

USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.

USD/JPY News

Gold: Pivots around $1500 mark, awaits FOMC policy update

Gold extended its sideways consolidative price action through the early European session on Wednesday and was seen pivoting around the key $1500 psychological mark, awaiting FOMC policy decision.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Cryptos seeing multiple launches into the universe

The Altcoin market has quickly confirmed Tuesday’s analysis with flashing rises in the last 24 hours. The two eternal aspirants to lead the crypto market – Ethereum and XRP – are rising sharply against Bitcoin and increasing its value rapidly.

Read more

Forex MAJORS

Cryptocurrencies

Signatures