- A slight deterioration in the global risk sentiment underpinned traditional safe-haven currencies.
- Renewed weakness in the US bond yields capped the USD and prompted some profit-taking.
- Traders now look forward to the US ISM manufacturing PMI for some short-term opportunities.
The USD/CHF pair dropped to fresh session lows in the last hour, with bears now eyeing a follow-through weakness below the 0.9900 round figure mark.
The pair failed to capitalize on its early uptick to one-month tops and was being weighed down by reviving demand for traditional safe-haven currencies – including the Swiss Franc – amid a slight deterioration in the global risk sentiment.
Reviving safe-haven demand exerts some pressure
The global flight to safety was further reinforced by a sharp intraday turnaround in the US Treasury bond yields, which kept a lid on the recent US Dollar bullish run to multi-year tops and further collaborated to the pair’s intraday pullback.
Tuesday’s modest slide could further be attributed to some near-term profit-taking, especially after the pair’s recent upsurge of over 200-pips from the vicinity of the 0.9700 handle, though bullish oscillators might attract some dip-buying interest.
Moving ahead, investors now look forward to the US economic docket – highlighting the release of ISM manufacturing PMI – will influence the USD price dynamics and produce some short-term trading opportunities.
Technical levels to watch
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