- Weaker Swiss CPI weighed heavily on the CHF and provided a strong boost.
- The bullish run seemed rather unaffected by the prevalent risk-off mood.
- A slight disappointment from the US ADP report does little to influence.
The USD/CHF pair climbed further beyond the parity mark and touched a fresh 2-1/2 month tops, around the 1.0020 region in reaction to upbeat US ADP report.
Following the previous session’s sharp intraday pullback of over 90 pips, the pair managed to regain positive traction on Wednesday. The strong intraday move up seemed unaffected by the prevailing risk-off mood, which tends to underpin demand for traditional safe-haven currencies, including the Swiss Franc (CHF).
Bulls regain control on weaker Swiss CPI
Some renewed US Dollar buying interest, though lacked any strong follow-through, was seen as one of the key factors lending some initial support to the major. This coupled with Wednesday’s weaker Swiss consumer inflation figures weighed on the CHF and provided an additional boost since the early European session.
Meanwhile, the latest ADP report came in to show that the US private-sector employers added 135K new jobs in September. The headline print was well below the previous month’s reading of 195K jobs and also missed consensus estimates, pointing to the addition of 140K, though did little to prompt any fresh selling.
It, however, remains to be seen if bulls are able to capitalize on the momentum or the pair runs into some fresh supply at higher levels amid growing odds that the Fed might be forced to cut interest rates again in October, especially after Tuesday’s disappointing release of the US ISM manufacturing PMI for September.
Technical levels to watch
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