• Catches some aggressive bids despite a modest USD profit-taking slide.
• Risk-on mood/surging US bond yields remained supportive of the move.
The USD/CHF pair continued gaining positive traction through the early North-American session and is now fast approaching the overnight swing high to near three-month tops.
Having broken out of the Asian/early European session consolidation phase, the pair picked up the pace and built on its recent bullish trajectory from the 0.9900 neighbourhood, or the very important 200-day SMA support.
The strong intraday up-move seemed rather unaffected by a modest US Dollar pull-back from multi-week tops, with bulls taking cues from the prevalent risk-on mood, which tends to dent the Swiss Franc's relative safe-haven status.
Optimism over a possible resolution of the US-China trade disputes boosted investors’ appetite for riskier assets - like equities and was further reinforced by a follow-through upsurge in the US Treasury bond yields.
It would now be interesting to see if bulls finally make it through the 1.0100 handle or the up-move once again fizzles out at higher levels as the focus now shifts to speeches by several FOMC officials, including the Fed Chair Jerome Powell.
Technical levels to watch
On a sustained move beyond the mentioned handle, the pair is likely to aim towards Nov. swing high resistance near the 1.0125-30 region before eventually darting to reclaim the 1.0200 round figure mark. Alternatively, any immediate pull-back now seems to find support near the 1.0050 region, which if broken might prompt some additional long-unwinding trade and accelerate the fall back towards the parity mark.
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
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 inflation forecast, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.