USD/CHF roils five-day uptrend to drop towards 0.9300 on covid fears, Swiss GDP eyed


  • USD/CHF consolidates weekly gains, drops the most in six days.
  • Virus woes spread on concerns over South African variant, WHO calls for special meeting.
  • Fears of Fed’s rate hike at the wrong time adds to the risk-off mood.
  • Swiss Q3 GDP eyed for fresh impulse but risk catalysts are the key.

USD/CHF stays pressured around intraday low after snapping the five-day advances during early Asian session on Friday. That said, the quote registers the most daily losses in over a week while posting 0.9330 as a quote, down 0.27% on a day.

The risk barometer pair justifies the Swiss currency’s (CHF) safe-haven status on sour sentiment due to the coronavirus fears ahead of the key Swiss Q3 GDP data.

The covid-19 woes spread outside the initial fear-zone of Europe on concerns relating to the variant, with a formal name of B.1.1.529, which is linked to South Africa and is immune to the vaccines. For the same, the World Health Organization (WHO) has called for a special meeting on Friday and may announce it as the variant of concern.

Additionally weighing the risk appetite are the chatters that the Fed’s much-lauded monetary policy tightening will be at the wrong time.

Amid these plays, the US 10-year Treasury yields drop eight basis points (bps) to 1.565%, extending Wednesday’s pullback from the monthly peak. Additionally portraying the risk aversion are the downbeat prints of the S&P 500 Futures, -0.80% intraday, as well as the Asia-Pacific stocks.

While the virus updates are important for near-term USD/CHF moves, Q3 Swiss GDP will also direct the pair traders. Forecasts suggest the growth number will rise from 1.8% prior to 2.0% QoQ on a seasonally adjusted basis. However, the YoY print is likely easing from 7.7% to 3.2%.

Other than that, the US traders’ return from the Thanksgiving Day holiday and the yields are also important to watch for clear direction.

Technical analysis

A clear downside break of a 12-day-old ascending trend line directs USD/CHF bears to 10-DMA level surrounding the 0.9300 threshold.

Additional important levels

Overview
Today last price 0.9333
Today Daily Change -0.0025
Today Daily Change % -0.27%
Today daily open 0.9358
 
Trends
Daily SMA20 0.9218
Daily SMA50 0.9236
Daily SMA100 0.9198
Daily SMA200 0.9177
 
Levels
Previous Daily High 0.9362
Previous Daily Low 0.9324
Previous Weekly High 0.933
Previous Weekly Low 0.9187
Previous Monthly High 0.9338
Previous Monthly Low 0.9106
Daily Fibonacci 38.2% 0.9347
Daily Fibonacci 61.8% 0.9339
Daily Pivot Point S1 0.9335
Daily Pivot Point S2 0.9311
Daily Pivot Point S3 0.9297
Daily Pivot Point R1 0.9372
Daily Pivot Point R2 0.9385
Daily Pivot Point R3 0.9409

 

 

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