- Concerns about slowing global growth provided a minor lift to safe-haven currencies.
- The USD caught some fresh bids and helped limit any deeper losses, at least for now.
- Investors now eye US PMI prints, Fedspeaks for some short-term trading impetus.
The USD/CHF pair quickly reversed an early European session dip to sub-0.9900 levels and might now be headed towards the top end of its daily trading range.
Worries about global growth resurfaced on Monday following yet another disappointing Euro-zone PMI prints for September and triggered a fresh wave of risk-aversion trade, which boosted the Swiss Franc’s safe-haven appeal and exerted some intraday pressure on the major.
Resurgent USD demand helped limit early dip
The global flight to safety was further reinforced by a sharp intraday slide in the US Treasury bond yields, though a goodish pickup in the US Dollar demand, primarily led by some renewed selling around the shared currency, helped limit any deeper losses, at least for now.
The pair managed to rebound around 20-25 pips from daily lows and held stable near the 0.9910-15 region as market participants now look forward to the release of flash US manufacturing and services PMI in order to grab some short-term trading opportunities.
Apart from this, scheduled speeches by influential FOMC members – New York Fed President John Williams and St. Louis Fed President James Bullard – might drive sentiment surrounding the greenback and further contribute towards providing some short-term impetus.
Technical levels to watch
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