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  • USD/CHF eases from intraday high during the first positive day in three.
  • US dollar struggles to keep rebound even as Treasury yields step back.
  • Downbeat Swiss GDP, indecisive US PMIs keep troubling markets ahead of Friday’s US NFP.

USD/CHF trims intraday gains to 0.05% while stepping back to 0.8973 ahead of Wednesday’s European session. In doing so, the quote struggles to keep the first daily gains of the week as the US dollar recovery ebbs amid a quiet session, backed by the lack of major catalysts and cautious sentiment ahead of Friday’s US NFP.

Welcome developments concerning the US-China trade deal and chatters surrounding a $50 billion covid relief package to the developing nations, by the International Monetary Fund (IMF), the World Health Organization (WHO) and other institutions add to the market optimism and back USD/CHF buyers.

However, the US dollar index (DXY) struggles around 90.00 even as the US 10-year Treasury yields drop back to 1.60% by the press time.

On Tuesday, Swiss GDP dropped below -0.2% YoY forecast to -0.5% but the recovery in the US ISM Manufacturing PMI was also not up to the mark as inflation and employment components failed to put a bid under the US dollar. Additionally, fears that Friday’s US jobs report may pose another disappointment for the markets add to caution and drag the USD/CHF prices.

Meanwhile, US ADP Employment Change, ISM Services PMI and Fedspeak can offer intermediate moves to the USD/CHF traders, mostly upside, ahead of the key Nonfarm Payrolls (NFP).

Technical analysis

Unless crossing the monthly resistance line around 0.9005, USD/CHF rebound remains elusive.