USD/CHF remains on the back foot as US-China trade stalemate extends
- On-going drama concerning the US-China trade negotiations in September helps safe-havens, including Swiss France (CHF).
- Brexit, tensions from the Middle East and the latest central bank actions also drag the USD/CHF pair downwards.
With the growing tension between the US and China pushing traders towards safe havens, the USD/CHF pair drops to 0.9718 during early Monday.
While recent tension between the world’s two largest economies has turned down the scope of any trade meeting in September, the same increase the odds of a global slowdown and pushes major central banks to easy monetary policy off-late.
Recently, the South China Morning Post reported that China’s consumer spending may weaken further this year due to escalating trade war tension.
Additionally, geopolitical tension concerning the UK’s exit from the EU and Iran’s war-like relations with the US adds strength to safe-havens.
Furthermore, the absence of any major data/event during the week-start Asian session, especially while Japanese markets are off, also pushes traders to carry the previous momentum forward.
Technical Analysis
An area comprising lows since June near 0.9693/90 gains sellers’ immediate attention amid whereas buyers’ targeting 21-day exponential moving average (EMA) level of 0.9818 need to overcome July month low near 0.9804.
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.
