- The USD remained well supported by tempered Fed rate cut expectations.
- Reviving safe-haven demand benefits the CHF and exerts some pressure.
- The Fed Chair Powell on Tuesday did not comment on monetary policy.
The USD/CHF pair quickly retreated around 20-pips from near three-week tops and is currently placed at the lower end of its daily trading range, around the 0.9930 region.
As investors continue scaling back their expectations for an aggressive Fed rate cut at the upcoming meeting on July 30-31, the US Dollar built on its recent positive momentum and climbed to near three-week tops, levels beyond the 97.00 round figure mark.
Bulls, however, failed to capitalize on the greenback strength, rather took cues from deteriorating global risk sentiment – as depicted by a sea of red across global equity markets and which tends to boost the Swiss Franc’s relative safe-haven status.
Meanwhile, the Fed Chair Jerome Powell refrained to comment on monetary policy or the economy in the opening remarks at Boston Fed conference and hence, the key focus will remain on a two-day Congressional testimony on Wednesday and Thursday.
In the meantime, scheduled speeches by St. Louis Fed President James Bullard and the Fed Governor Randal Quarles will now be looked upon for some short-term trading impetus later during the North-American session.
Technical levels to watch
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