“¢ A goodish rebound in the US bond yields helped the USD to regain some traction.
“¢ Improving risk sentiment dented the CHF’s safe-haven status and remained supportive.
“¢ Market participants now look forward to Powell’s scheduled speech for fresh impetus.
The USD/CHF pair reversed an early European session dip to 2-1/2 month lows and spiked to fresh session tops, around the 0.9945 region in the last hour.
The pair managed to find decent support near the 0.9900 round figure mark, with a combination of positive factors prompting some short-covering move amid near-term oversold conditions and assisting to snap two consecutive days of losing streak.
A goodish rebound in the US Treasury bond yields helped the US Dollar to stage a modest rebound from multi-week lows, which coupled with signs of stability in the global financial markets undermined the Swiss Franc’s safe-haven status and remained supportive of the intraday bounce of around 40-45 pips.
It, however, remains to be seen if the pair is able to capitalize on the recovery move or meets with some fresh supply at higher levels as investors now seemed convinced that the Fed might be forced to cut interest rates by the end of this year.
Hence, the key focus will be on Tuesday scheduled speech by the Fed Chair Jerome Powell, which might provide some fresh insight over the central bank’s monetary policy outlook and eventually influence the USD price dynamics ahead of this week’s important release of the closely watched US monthly jobs report (NFP) on Friday.
Technical levels to watch
Share
