USD/CHF regains above 0.9500 as global policymakers’ counter coronavirus
- USD/CHF recovers the early-day losses.
- Fed, RBNZ announced surprise rate cuts, BOJ to hold monetary policy while RBA signaled moves on Thursday.
- European finance ministers and G7 will also talk about the pandemic.
With the trading sentiment taking a U-turn from the early-day risk-off, USD/CHF extends recovery gains to 0.9525, +0.10%, amid the Asian session on Monday.
While a surprise rate action from the Fed and RBNZ alarmed the markets during early Asia, a slew of policy announcements from the RBA and expected moves by the BOJ seems to assure traders that the global policymakers will tackle negative implications of the coronavirus (COVID-19).
Not only central bankers, but the meeting of the European Finance Ministers and the Group of Seven (G7) leaders (via teleconference) also portrays the active response to the pandemic by the key policymakers.
That said, the US 10-year treasury yields seem to bounce from the early-day lows to 0.67% whereas stocks in Asia portray mild risk recovery by the press time.
Looking forward, major central bank moves and the virus updates will be the key to watch while Swiss Producer and Import Prices, as well as the US Empire State Manufacturing Index, could decorate the economic calendar.
Technical Analysis
10-day SMA near 0.9450 acts as the immediate support whereas January 16, 2020 low near 0.9615 may question the short-term upside.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
