USD/CHF climbs further beyond mid-0.9600s, back closer to multi-day tops set on Tuesday

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  • USD/CHF regains positive traction on Wednesday amid resurgent USD demand.
  • The up-move seemed unaffected by a fresh wave of the global risk-aversion trade.

The buying interest around the greenback picked up pace in the last hour and lifted the USD/CHF pair to daily tops, around the 0.9665-70 region.

The pair caught some fresh bids on Wednesday and moved back closer to the overnight swing high, touched ahead of the Fed’s latest move to allow foreign central banks to temporarily exchange their holdings of the US Treasuries for dollar loans.

Following the previous session’s intraday pullback, the US dollar regained positive traction amid persistent worries over the economic fallout from the coronavirus pandemic and turned out to be one of the key factors that provided a goodish lift to the major.

Meanwhile, mounting fears about an imminent global recession triggered a fresh wave of the global risk-aversion trade, which tends to underpin the Swiss franc’s safe-haven demand, albeit did little to hinder the pair’s intraday positive momentum.

With the USD price dynamics turning out to be an exclusive driver of the pair’s momentum through the early European session, market participants now look forward to the release of the US ISM Manufacturing PMI for a fresh trading impetus.

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