- USD/CHF gains traction for the second straight session amid some follow-through USD buying.
- Improving risk sentiment undermined the CHF’s safe-haven demand and remained supportive.
The USD/CHF pair held on to its modest gains through the early European session and is currently placed near the top end of its daily trading range, around the 0.9680-85 region.
Following the previous session’s intraday pullback from the 0.9700 mark, or one-week tops, the pair regained some positive traction on Thursday amid the prevailing bullish sentiment surrounding the US dollar.
Despite the latest optimism over a steady trend down in the new coronavirus cases globally, investors remain concerned over the economic fallout from the pandemic and continued boosting the USD’s status as the global reserve currency.
The market worries about an imminent global recession were further fueled by Wednesday’s awful US economic data, which illustrated the severity of the collapse in the economic activity due to the COVID-19-induced lockdowns.
This coupled with a modest bounce in the global risk sentiment, as depicted by a positive mood in the equity markets, undermined the Swiss franc’s perceived safe-haven demand and contributed to the pair’s modest uptick on Thursday.
It, however, remains to be seen if bulls are able to capitalize on the move or the pair continues with its struggle to make it back above the 0.9700 mark. Traders will now look forward to the US initial weekly jobless claims for a fresh impetus.
Technical levels to watch
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