- USD/CHF continued gaining positive traction for the sixth consecutive session on Friday.
- Sustained USD buying interest was seen as a key factor fueling the strong positive move.
- Bullish traders seemed rather unaffected by a weaker opening in the US equity markets.
The USD/CHF pair maintained its bid tone through the early North American session and was last seen trading near two-month tops, around the 0.9285-90 region.
The pair added to this week's strong gains and continued scaling higher for the sixth consecutive session on the last trading day of the week. The prevalent strong bullish sentiment surrounding the US dollar was seen as a key factor fueling the momentum.
Investors remain concerned that the second wave of coronavirus infections could lead to severe lockdown restrictions. This, along with the likelihood of an economic slowdown continued boosting the greenback's status as the global reserve currency.
Friday's disappointing release of the US Durable Goods Orders added to the market worries. In fact, the headline orders recorded a modest growth of 0.4% in August, marking a sharp deceleration from the previous month's upwardly revised reading of 11.7%.
Meanwhile, a weaker opening in the US equity markets, amid skepticism over the next round of the US fiscal stimulus measures and which tends to undermine the safe-haven Swiss franc, did little to hinder the USD/CHF pair's bullish trajectory.
Hopes that the US Congress could break months-long impasse to agree on the next round of fiscal stimulus measures revived after a key lawmaker said that Democrats in the US House of Representatives were working on a $2.2 trillion package that could be voted on next week.
The ongoing momentum seems strong enough to push the pair further beyond the 0.9300 mark, towards 100-day SMA, around the 0.9340-45 region. Nevertheless, the USD/CHF pair remains on track to end the week on an upbeat note and record its highest weekly close since July.
Technical levels to watch
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.
Recommended content
Editors’ Picks
AUD/USD holds hot Australian CPI-led gains above 0.6500
AUD/USD consolidates hot Australian CPI data-led strong gains above 0.6500 in early Europe on Wednesday. The Australian CPI rose 1% in QoQ in Q1 against the 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY sticks to 34-year high near 154.90 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price struggles to lure buyers amid positive risk tone, reduced Fed rate cut bets
Gold price lacks follow-through buying and is influenced by a combination of diverging forces. Easing geopolitical tensions continue to undermine demand for the safe-haven precious metal. Tuesday’s dismal US PMIs weigh on the USD and lend support ahead of the key US macro data.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.