USD/CHF refreshes weekly tops, just above mid-0.9500s
- USD/CHF regains traction on Friday amid a strong follow-through USD buying.
- A strong rebound in the US bond yields underpinned the USD demand on Friday.
- The risk-on mood weighed on the safe-haven CHF and remained supportive.
A strong pickup in the greenback demand lifted the USD/CHF pair to fresh weekly tops, around mid-0.9500s in the last hour.
Following the previous day's intraday pullback and a brief consolidation through the early part of Friday's trading action, a combination of factors assisted the pair to catch some fresh bids during the mid-European session.
A sharp turnaround in the global risk sentiment, which tends to undermine demand for traditional safe-haven currencies, including the Swiss franc, was seen as one of the key factors that extended some early support to the major.
Meanwhile, the risk-on flow triggered a solid bounce in the US Treasury bond yields. This helped the US dollar gain traction and build on the overnight strong gains, which eventually led to a sudden upsurge over the past two hours or so.
The already stronger buck got an additional boost after the US President Donald Trump, via his official twitter handle, again called upon the Congress to approve a payroll tax cut until the end of this year, December 31.
Apart from this, possibilities of some short-term trading stops being triggered on a sustained move beyond the key 0.9500 psychological mark also seemed to have contributed to the pair's latest leg the positive move to over one-week tops.
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
