- A combination of diverging forces failed to provide any impetus to USD/CHF.
- A recovery in the risk sentiment undermined the CHF’s safe-haven demand.
- A subdued USD demand failed to impress bulls and seemed to cap the upside.
The USD/CHF pair extended its sideways consolidative price action on Friday and remained confined in a narrow trading band, just below mid-0.9400s.
A combination of diverging factors failed to provide any meaningful impetus, rather led to a subdued/range-bound price action through the early European session and held the pair well below one-week tops set on Thursday.
A strong recovery in the global risk sentiment, as depicted by solid gains across equity markets, weighed on traditional safe-haven currencies, including the Swiss franc, and was seen as one of the key factors lending some support.
Following the Fed's overnight announcement that it will inject more than $1.5 trillion of temporary liquidity into the short-term funding markets, the BoJ announced an unscheduled buying of Japanese Government Bonds (JGBs) and boosted investors' confidence.
Meanwhile, the positive factor, to a larger extent, was negated by the fact that the US dollar seemed struggling to build on the previous day's strong recovery gains, which eventually capped any upside for the major, at least for now.
Hence, it will be prudent to wait for a sustained move in either direction before positioning for any meaningful intraday momentum amid absent relevant market-moving economic releases and mounting fears over the coronavirus outbreak.
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
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.