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   “¢   A modest uptick in the US bond yields helps revive the USD demand.
   “¢   Softer Swiss CPI figures exert some additional pressure on the CHF.
   “¢   Key focus remains on the closely watched US monthly jobs report.

The USD/CHF pair caught some fresh bids on Friday and refreshed six week tops, around the 0.9940 region in the last hour.

After yesterday’s brief pause, the pair regained positive traction for the ninth session in the previous ten and built on this week’s bullish break above 100-day SMA hurdle. A fresh leg of an uptick in the US Treasury bond yields helped revive the US Dollar demand and was seen as one of the key factors pushing the pair higher.  

The Swiss Franc was further weighed down by today’s softer than expected consumer inflation figures, coming in to show a lower than expected rise of 0.1% m/m and 1.0% y/y in September. Meanwhile, the prevalent risk-off mood did little to influence the CHF’s safe-haven status, with the USD price dynamics turning out to be an exclusive driver of the pair’s up-move to the highest level since August 20.

It would now be interesting to see if the pair is able to build on the positive momentum or traders opt to take some profits off the table, especially after the recent upsurge of 400-pips over the past two weeks or so and ahead of today’s key event risk – the closely watched US monthly jobs report (NFP).

Technical levels to watch

Immediate resistance is pegged near the 0.9965-70 region, above which the pair seems all set to reclaim the parity mark. On the flip side, the 0.9920 level, followed by the 0.9900 handle now seems to protect the immediate downside, which if broken could accelerate the fall back towards 100-day SMA support near the 0.9865 region.