USD/CHF consolidates in a range, just below 3-week tops

   “¢   US-China trade optimism/risk-on mood dampens CHF’s safe-haven appeal.
   “¢   Subdued USD price action fails to provide any additional boost to the major.
   “¢   The pair remains on track to post strong weekly gains of over 1.0%.

The USD/CHF pair was seen consolidating recent strong gains and oscillated in a narrow trading band, just south of three-week tops.  

A combination of supporting factors assisted the pair to build on last week’s strong rebound move from over three-month lows and kept pushing higher through Thursday’s trading session.

A modest US Dollar uptick got an additional boost following the release of better-than-expected US economic data – initial weekly jobless claims and Philly Fed manufacturing index.

This coupled optimism led by a report that the US is considering easing tariffs on Chinese products triggered a late rally in the US equity markets and further dented the Swiss Franc’s safe-haven status.  

The pair rallied to levels just above mid-0.9900s, the highest since December 27, but in absence of any fresh catalysts, lacked any strong follow-through on the last trading day of the week.

There isn’t any major market-moving economic data due for release on Friday and hence, the broader market risk-sentiment and the USD price dynamics might continue to act as key determinants of the pair’s momentum.

Nevertheless, the pair remains on track to end the week with strong gains of around 1% and also seems all set to record its highest weekly close at least since late-December.  

Technical levels to watch