“¢ Trump’s move to slap tariffs on Mexico triggers a fresh wave of global risk aversion trade.
“¢ The global flight to safety boosted the CHF’s safe-haven status and prompts fresh selling.
“¢ A subdued USD price action, amid tumbling US bond yields, does little to lend any support.
The USD/CHF pair came under some renewed selling pressure on Friday and extended the overnight pullback from weekly tops.
Having faced rejection near the 1.0100 handle in the previous session, a fresh wave of global risk aversion trade underpinned the Swiss Franc’s safe-haven demand and prompted some fresh selling during the Asian session on Friday.
The US President Donald Trump’s shock move to slap tariffs on Mexico, coupled with reports that China is ready with a plan to limit the rare earth exports to the US intensified fears over a global trade war and boosted demand for traditional safe-haven assets.
The US Treasury bond yields took a sharp knock amid the global flight to safety, which kept a lid on the recent US Dollar rally to near two-year tops and further collaborated to the pair’s ongoing slide to an intraday low level of the 1.0050 region.
With the broader market risk sentiment turning out to be a key driver of the pair’s momentum, market participants now look forward to the US economic docket in order to grab some short-term trading opportunities on the last trading day of the week.
Technical levels to watch
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