USD/CHF rebounds from 10-day lows, trades near 1.0040

Improved market sentiment helps the pair turn north on Friday.
US Dollar Index posts small losses following yesterday's rebound.
Coming up: Industrial production and consumer confidence data from the U.S.

Following a drop to its lowest level in 10 days at 1.0018 in the early European morning, the USD/CHF staged a modest recovery and was last seen trading at 1.0040, where it was virtually unchanged on the day.

Improved market sentiment on Friday seems to be weighing on the traditional safe-havens such as the CHF. British lawmakers' vote to delay Brexit and reports of the U.S. and China moving closer to a trade deal boosted the risk appetite. Chinese news agency Xinhua on Friday said Chinese Vice Premier Liu He had phone conversations with Treasury Secretary Mnuchin and Trade Representative Lighthizer and 'substantive progress' was made in trade negotiations. Reflecting the risk-on mood, Germany's DAX is now adding nearly 1% on the day and the UK's FTSE is up 0.65%.

On the other hand, the greenback is staying relatively calm on Friday with the US Dollar Index posting small losses in the 96.70-60 area ahead of the macroeconomic data releases from the United States and keeping the pair's upside capped.

The NY Fed's Empire State Manufacturing Index, the UoM's Consumer Sentiment Survey, and industrial production data from the U.S. will be looked upon for fresh catalysts.

Technical levels to watch for

USD/CHF

Trends:
    Daily SMA20: 1.0032
    Daily SMA50: 0.9976
    Daily SMA100: 0.997
    Daily SMA200: 0.992
Levels:
    Previous Daily High: 1.0052
    Previous Daily Low: 1.0028
    Previous Weekly High: 1.0125
    Previous Weekly Low: 0.9977
    Previous Monthly High: 1.01
    Previous Monthly Low: 0.9921
    Daily Fibonacci 38.2%: 1.0037
    Daily Fibonacci 61.8%: 1.0043
    Daily Pivot Point S1: 1.0027
    Daily Pivot Point S2: 1.0015
    Daily Pivot Point S3: 1.0003
    Daily Pivot Point R1: 1.0051
    Daily Pivot Point R2: 1.0063
    Daily Pivot Point R3: 1.0075

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.