USD/CHF surrenders early gains to weekly tops, refreshes session lows ahead of US data
- Fading US-China trade optimism provides a modest boost to the CHF’s safe-haven status.
- The USD witnesses some selling in the wake of an intraday pullback in the US bond yields.
- Investors now look forward to the final US GDP print for some meaningful trading impetus.
The USD/CHF pair struggled to preserve early gains to weekly tops and dropped to fresh session lows, around the 0.9770-65 region in the last hour.
The pair stalled this week's recovery move from yearly lows and started retreating from an intraday high level of 0.9814 amid fading US-China trade optimism in reaction to comments by China's foreign ministry spokesman, clarifying that they were not aware of any report on a tentative trade truce between the two countries.
The remarks failed to boost hopes that the US President Donald Trump and his Chinese counterpart Xi Jinping will declare a trade war cease-fire at the G20 summit later this week. The comments also dented investors' risk appetite and provided a modest lift to the Swiss Franc's relative safe-haven status.
Meanwhile, a slight deterioration in the global risk sentiment was evident from an intraday turnaround in the US Treasury bond yields, which exerted some downward pressure on the US Dollar and further collaborated to the pair's pullback of around 50-pips to snap two days of the positive move.
The downside seemed limited, at least for the time being as investors now look forward to the US economic docket – highlighting the release of the final Q1 GDP report, which will influence the USD price dynamics and contribute towards producing some meaningful trading opportunities.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
