USD/CHF recovers early lost ground, jumps back closer to 0.9900 handle

  • The US CPI-led upsurge in the US bond yields helped the USD to gain some traction.
  • Positive equities undermined the CHF’s safe-haven demand and remained supportive.

The USD/CHF pair quickly reversed an early North-American session dip and has now rallied back closer to the top end of its daily trading range.

In a delayed reaction to hotter-than-expected US core CPI print, a goodish pickup in the US Treasury bond yields helped the US Dollar to recover the early lost ground and turned out to be one of the key factors behind the pair's intraday bounce.

In fact, consumer inflation excluding food and energy prices (the so-called core CPI) jumped 0.3% in June, marking the biggest rise in a year and a half, while the yearly rate also edged up to 2.1% from 2.0% recorded in the previous month and expected. 

Adding to this, the number of people applying for unemployment related benefits unexpectedly fell to the lowest level in more than three months during the week ended July 6, which provided an additional boost to the greenback and remained support.

This coupled with improving risk sentiment - as depicted by a positive mood around equity markets, dented demand for perceived safe-haven currencies - including the Swiss Franc, and further collaborated to the pair's sudden rise of around 40-45 pips.

It would now be interesting to see if the current leg of an up-move marks the resumption of the recent recovery move from yearly lows or meets with some fresh supply at higher levels amid reviving hopes for an aggressive Fed rate cut move later this July.

Technical levels to watch


Today last price 0.9887
Today Daily Change -0.0008
Today Daily Change % -0.08
Today daily open 0.9895
Daily SMA20 0.9868
Daily SMA50 0.998
Daily SMA100 1.0011
Daily SMA200 0.9983
Previous Daily High 0.9943
Previous Daily Low 0.9887
Previous Weekly High 0.9932
Previous Weekly Low 0.978
Previous Monthly High 1.0017
Previous Monthly Low 0.9693
Daily Fibonacci 38.2% 0.9908
Daily Fibonacci 61.8% 0.9922
Daily Pivot Point S1 0.9874
Daily Pivot Point S2 0.9852
Daily Pivot Point S3 0.9818
Daily Pivot Point R1 0.993
Daily Pivot Point R2 0.9964
Daily Pivot Point R3 0.9986



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