- US-China trade uncertainty continued benefitting the CHF’s safe-haven status.
- Sliding US bond yields undermined the USD and added to the intraday selling bias.
- Thursday’s scheduled speeches by FOMC member eyed for some trading impetus.
The USD/CHF pair came under some fresh selling pressure during the early European session on Thursday and tumbled to 1-1/2 week lows, around the 0.9875 region in the last hour.
Having failed to find acceptance above the very important 200-day SMA at the start of the current trading week, the witnessed a dramatic turnaround and continued losing ground for the fourth consecutive session on Thursday.
Weighed down by reviving safe-haven demand
Doubts over a preliminary US-China trade deal continued weighing on the global risk sentiment and turned out to be one of the key factors boosting demand for traditional safe-haven currencies – including the Swiss Franc.
The global flight to safety was further reinforced by some follow-through pullback in the US Treasury bond yields, which undermined the US Dollar demand and further collaborated to the pair’s heavily offered tone.
Thursday’s slide to the lowest level since November 5 could also be attributed to some follow-through technical selling below the 0.9900 round-figure mark, which should pave the way for a further intraday decline.
Hence, a slide back towards challenging weekly lows support, around mid-0.9800s, now looks a distinct possibility as market participants look forward to speeches by influential FOMC members for a fresh impetus.
Technical levels to watch
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