USD/CHF keeps the red below mid-0.9900s, over 1-week lows

   “¢   A modest pickup in the US bond yields help revive USD demand and extend some support.
   “¢   The prevalent cautious mood seemed to underpin CHF’s safe-haven status and keeps a lid.

The USD/CHF pair held on to its weaker tone through the mid-European trading session, albeit has managed to recover few pips from an intraday low level of 0.9912.

The pair extended last week’s rejection slide from the vicinity of the key 1.0000 psychological mark and traded with a negative bias for the third session in the previous four. Anxiousness over the upcoming key event risk weighed on investors’ appetite for perceived riskier assets and buoyed the Swiss Franc’s relative safe-haven status.  

The downtick, however, managed to find some support ahead of the very important 200-day SMA support, with a modest uptick in the US Treasury bond yields reviving the US Dollar demand and helping limit further downside, though dovish Fed rate hike expectations kept a lid on meaningful recovery.

This week’s key focus will be on the high-level US-China trade talks and the latest FOMC monetary policy update, which followed by the keenly watched US monthly jobs report (NFP) would provide some fresh impetus and help investors determine the pair’s next leg of a directional move.

In the meantime, broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the pair’s trading action amid absent relevant market moving economic releases on the first day of a new week.

Technical levels to watch