- Reviving safe-haven demand benefitted the CHF and exerted some fresh pressure.
- A modest USD pullback from multi-week tops added to the intraday selling bias.
The USD/CHF pair remained under some heavy selling pressure through the mid-European session on Monday and dropped to fresh session lows, farther below mid-0.9900s in the last hour.
The pair failed to capitalize on its recent positive move and continued with its struggled to find acceptance above the very important 200-day SMA amid reviving demand for traditional safe-haven currencies – including the Swiss Franc.
Weighed down by renewed trade uncertainty
The US President Donald Trump’s comments on Friday, saying that the reports on the rollback of tariffs on Chinese goods were incorrect, weighed on the global risk sentiment and turned out to be one of the key factors exerting pressure.
Adding to this, a modest US Dollar pullback from multi-week tops further collaborated to the pair’s heavily offered tone on the first day of a new trading week, reversing a major part of gains recorded over the past two trading sessions.
It, however, remains to be seen if the current pullback marks the end of the recent positive momentum or the pair is able to attract some dip-buying interest at lower levels amid holiday-thinned liquidity conditions on Monday.
Moving ahead, this week’s other US economic releases, including the latest consumer inflation figures and monthly retail sales data, along with the Fed Chair Jerome Powell’s testimony will be looked upon for a fresh directional impetus.
Technical levels to watch
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