- Risk-off flows ramps up the demand for CHF.
- Expectations over a possible SNB intervention limits losses.
- Coming up: PCE price index, Chicago PMI, and UoM Consumer Confidence Index from the U.S.
The USD/CHF pair dropped to its lowest level of the day at 1.0032 with the risk-off flows ramping up the demand for the safer CHF and weighing on the pair. Ahead of the macroeconomic data releases from the U.S., the pair was able to stage a modest rebound and was last seen trading at 1.0060, losing 0.18% on a daily basis.
Heightened geopolitical fears amid the ongoing trade war between the U.S. and China alongside President Trump’s announcement of 5% tariffs on all Mexican imports hurt the risk sentiment on Friday. However, with the EUR/CHF pair slumping below the critical 1.12 mark, markets started to price a potential intervention by the SNB and allowed the CHF to recover against its rivals.
Meanwhile, the greenback struggles to gather strength on Friday with the US Dollar Index posting modest daily losses near the 98 mark, helping the pair rebound from its session lows. In the early NA session, the U.S. Bureau of Economic Analysis will release the Personal Consumption Expenditure Price Index figures, which is expected to stay unchanged at 1.5% on a yearly basis. Later in the day, the ISM Chicago’s PMI report and the UoM’s Consumer Confidence Index will be looked upon for fresh impetus.
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