- The pair manages to regain positive traction despite a subdued USD demand.
- The uptick also seemed rather unaffected by the prevailing cautious mood.
The USD/CHF pair climbed to fresh session tops, around mid-0.9900s during the early European session on Monday, with bulls making a fresh attempt to make it through the very important 200-day SMA.
Following Friday’s intraday rejection slide, the pair managed to regain some positive traction at the start of a new trading week – also marking its third day of a positive move in the previous four – and seemed rather unaffected by a subdued US Dollar demand.
Bulls seemed unaffected by subdued USD demand
Despite a goodish pickup in the US Treasury bond yields, the greenback failed to attract any meaningful buying interest and remained confined in a narrow trading band as investors still seemed to assess the latest twist in the prolonged US-China trade disputes.
Reports on Friday indicated that the US Administration was looking to restrict capital flows into China and to limit Chinese companies from trading on the US exchanges. The US Treasury officials on Saturday denied any such plans at this time but also did not rule them out.
Meanwhile, the prevalent cautious mood, which tends to benefit traditional safe-haven currencies like the Swiss Franc, did little to hinder the pair’s intraday positive momentum, albeit might turn out to be the only factor keeping a lid on any strong follow-through up-move.
Moving ahead, Monday’s relatively thin US economic docket – featuring the only release of Chicago PMI – will now be looked upon for some impetus, which coupled with the USD price dynamics might produce short-term trading opportunities later during the early North-American session.
Technical levels to watch
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