- USD/CHF pair gained some traction earlier today amid a modest USD uptick.
- Persistent trade-related uncertainties kept a lid on the attempted recovery.
- Wednesday’s key focus will remain on the highly anticipated FOMC decision.
The USD/CHF pair failed to capitalize on its early modest uptick and is currently placed in the neutral territory, well within the striking distance of over three-month lows.
A modest pickup in the US dollar demand helped the pair to gain some traction during the early part of Wednesday trading action, albeit a combination of factors kept a lid on the attempted intraday recovery move.
Focus on trade developments, FOMC
Conflicting reports added to persistent trade uncertainties and continued weighing on investors’ sentiment. This was evident from the prevalent cautious mood around equity markets, which turned out to be one of the key factors that benefitted the Swiss franc’s perceived safe-haven demand.
It is worth mentioning that the Wall Street Journal reported on Tuesday that the US President Donald Trump is yet to decide on the December 15 tariffs. On the other hand, negotiators from both sides were reportedly laying the groundwork for a preliminary deal to wind back their trade war.
Reviving safe-haven demand was further reinforced by a weaker tone surrounding the US Treasury bond yields, which held the USD bulls from placing any aggressive bets. This further collaborated towards capping the major ahead of the highly anticipated FOMC monetary policy decision.
Heading into Wednesday’s key event risk, traders are likely to take cues from the release of the latest US consumer inflation figures for November. The macro data might influence the USD price dynamics and produce some short-term trading opportunities later during the early North-American session.
Technical levels to watch