- US-China trade optimism seemed to weigh on traditional safe-haven currencies.
- The USD remained well supported by a follow-through uptick in the US bond yields.
- Traders now look forward to the US economic data for some short-term impetus.
The USD/CHF pair climbed to the 0.9900 neighbourhood, or four-week tops in the last hour, albeit quickly retreated few pips thereafter.
The pair extended this week’s solid bounce from the vicinity of the 0.9700 handle – testing at the start of the current trading week – and remained well supported by the latest US-China trade optimism, which seemed to undermine the Swiss Franc’s perceived safe-haven demand.
Risk-on mood/USD strength remains supportive
The pair’s ongoing positive momentum – summing up to nearly 200-pips over the past five trading sessions – was further supported by a follow-through US Dollar buying interest through the early European session on Friday amid recovering US Treasury bond yields.
Moving ahead, Friday’s US economic docket – highlighting the releases of personal spending data and July core PCE price Index – might influence the USD price dynamics and contribute towards producing some short-term trading opportunities on the last day of the week.
Technical levels to watch
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