USD/CHF steadily climbs to session tops, 1.0100 handle back on sight

   •  Trump’s positive trade-related comments ease worries about a full-blown trade war.
   •  Improving risk sentiment weighs on the CHF and prompts some short-covering move.
   •  Recovering US bond yields remain support, subdued USD demand might cap gains.

After an initial dip to 1.0050 area, the USD/CHF pair managed to regain some positive traction and has now recovered a part of the previous session's slump to near four-week lows.

The pair stalled its recent corrective slide and for now seems to have snapped three consecutive days of losing streak amid a slight improvement in the global risk sentiment, which tends to undermine demand for traditional safe-haven currencies - like the Swissy.

As markets still absorb shocks from the recent escalation in the US-China trade tensions, some positive comments by the US President Donald Trump - saying that he feels the Chinese trade negotiations will be successful, eased concerns over a full-blown US-China trade war.

Improving investors’ appetite for riskier assets was evident from a modest bounce in equity markets and recovering US Treasury bond yields, which seemed to be one of the key factors prompting some short-covering move through the mid-European session on Tuesday.

Meanwhile, a subdued US Dollar demand did little to provide any additional boost, with the broader market risk sentiment turning out to be an exclusive driver of the pair’s intraday recovery move from the lowest level since April 16.

It would now be interesting to see if the pair is able to capitalize on the positive move or the recovery is solely led by short-covering, possibly attracting some fresh selling at higher levels amid absent relevant market moving economic releases from the US.

Technical levels to watch