- USD/CHF edged lower on the first day of the week amid renewed USD selling bias.
- The upbeat market mood undermined the safe-haven CHF and helped limit losses.
- Investors might refrain from placing fresh bets ahead of Jackson Hole Symposium.
The USD/CHF pair edged lower through the early European session and was last seen trading near the lower end of its daily range, just below the 0.9100 mark.
The pair met with some fresh supply on the first day of a new week and eroded a part of the previous session’s positive move amid the emergence of some fresh selling around the US dollar. The impasse over the next round of the US fiscal stimulus measures, along with concerns about the US economic recovery continued exerting some pressure on the greenback.
The buck was further pressured by a weaker tone surrounding the US Treasury bond yields amid speculations for further policy easing by the Fed. Hence, the focus will remain on the Fed Chair Jerome Powell’s scheduled speech during the Jackson Hole symposium later this week. Powell’s remarks will be scrutinized for clearer guidance on the central bank’s outlook.
Despite the prevalent USD selling bias, the upbeat market mood capped any strong gains for the safe-haven Swiss franc and might help limit deeper losses. The global risk sentiment got a minor lift at the start of a new week after the US Food & Drug Administration (FDA) authorised the use of blood plasma from recovered patients as a treatment option.
The sentiment was also supported by reports that the Trump administration is considering by-passing normal US regulatory standards to fast-track an experimental coronavirus vaccine from the UK. This makes it prudent to wait for some strong follow-through selling before positioning for any further depreciating move amid absent relevant market-moving economic releases.
Technical levels to watch
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