USD/CHF takes the bids to 15-day high amid greenback rally

  • USD/CHF clears 50-day EMA for the first time since August 01.
  • Mixed trade/political headlines push favor greenback buyers ahead of the key Fed speak at the Jackson Hole Symposium.

With the global traders seeking solace in the US Dollar (USD) ahead of the key events, the USD/CHF pair surges to fresh 15-day high as it rises to 0.9855 ahead of Friday’s European session.

Global market players support the greenback mainly due to the progress in the US-China trade talks and likely hawkish comments from the Fed policymakers at the Jackson Hole favors. Recent comments from the US President Donald Trump and the White House Economic Adviser Larry Kudlow portrayed brighter chances of a September talks with China. On the other hand, Fed’s Esther George and Patrick Harker sound optimistic but Robert Kaplan held his dovish stand, which was largely ignored.

At the geopolitical front, tensions emanating from Iran and North Korea prevail while news that China is still stepping back from promised US imports worries the optimists.

As a result, the risk tone remains quite volatile after closely overcoming the signs of global recession portrayed by the US two-year, 10-year Treasury yield curve.

Investors now keep an eye over the Jackson Hole Wyoming as key central bankers are up for conveying their future policy move bias during the three-day event that started on Thursday. Though, major attention will be given to the Fed Chairman Powell’s speech on Friday as he isn’t expected to turn more dovish, which in turn clashes him with the US President Trump.

Technical Analysis

A sustained break of 50-day exponential moving average (EMA), at 0.9850 now, becomes necessary for the pair to challenge early-month low surrounding 0.9885 and then head towards the monthly top of 0.9976. A failure to do so can drag the quote back to 21-day EMA level of 0.9809 ahead of highlighting weekly low near 0.9770.

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