- A modest USD pullback from two-year tops prompted some intraday profit-taking.
- Weaker risk sentiment benefitted CHF’s safe-haven demand and added to the downtick.
- Traders look forward to the release of US ISM manufacturing PMI for a fresh impetus.
The USD/CHF pair trimmed a part of its early strong gains and has now retreated around 25-pips from six-week tops set earlier this Thursday.
The pair stalled its post-FOMC upsurge from sub-0.9900 level and failed just ahead of the very important 200-day SMA, with a modest US Dollar pullback from two-year tops prompting some profit-taking at higher levels.
Despite the expected rate cut, the fact that the Fed Chair Jerome Powell downplayed scope for significant easing triggered a fresh leg of an upsurge in the greenback and helped the pair to build to the recent positive momentum.
It is worth reporting that Powell on Wednesday, during the post-meeting press conference, described Wednesday’s rate cut as a mid-cycle adjustment of policy and not necessarily the beginning of a series of rate cuts.
Meanwhile, a slight deterioration in the global risk sentiment, as depicted by a cautious mood around equity markets, underpinned the Swiss Franc’s safe-haven demand and further collaborated to the pair’s intraday downtick.
Moving ahead, Thursday’s US economic docket – highlighting the release of ISM manufacturing PMI, will now be looked upon for some short-term trading impetus later during the early North-American session.
Technical levels to watch
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