- USD/CHF staged a modest bounce after hitting fresh multi-year lows on Wednesday.
- The risk-on environment undermined the safe-haven CHF and extended some support.
- The offered tone surrounding the USD capped the upside amid year-end thin liquidity.
The USD/CHF pair has managed to rebound around 35 pips from daily swing lows and was last seen hovering near session tops, around mid-0.8800s.
Following an early slide to the 0.8815 region, the pair staged a modest recovery and for now, seems to have stalled its recent bearish trajectory to the lowest level since January 2015. The prevalent upbeat market mood undermined demand for the safe-haven Swiss franc and extended some support to the USD/CHF pair.
Investors' appetite for perceived riskier assets remained well supported by the optimistic over a strong global economic recovery in 2021 and hopes for more US stimulus. The already stronger risk sentiment got an additional boost after UK regulators approved the of the AstraZeneca/Oxford coronavirus vaccine.
Apart from this, the uptick lacked any obvious catalyst and remained limited amid the heavily offered tone surrounding the US dollar. Despite the effective rejection of the measure to raise the direct payments to most US households from $600 to $2,000, the likelihood of additional US financial aid continued weighing on the USD.
Moreover, relatively thin liquidity conditions on the back of the year-end holiday season might further hold investors from placing any aggressive bets. This makes it prudent to wait for some strong follow-through buying before confirming that the USD/CHF pair has bottomed out and positioning for any meaningful recovery.
Market participants now look forward to the US economic docket, featuring the second-tier releases of Goods Trade Balance, Chicago PMI and Pending Home Sales. The data might influence the USD price dynamics. This, along with the broader market risk sentiment, will be looked upon for some trading opportunities around the USD/CHF pair.
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.