USD/CHF remains confined in a range, around mid-0.9400s
- 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
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
