- USD/CHF continued gaining positive traction for the sixth consecutive session on Friday.
- Sustained USD buying interest was seen as a key factor fueling the strong positive move.
- Bullish traders seemed rather unaffected by a weaker opening in the US equity markets.
The USD/CHF pair maintained its bid tone through the early North American session and was last seen trading near two-month tops, around the 0.9285-90 region.
The pair added to this week’s strong gains and continued scaling higher for the sixth consecutive session on the last trading day of the week. The prevalent strong bullish sentiment surrounding the US dollar was seen as a key factor fueling the momentum.
Investors remain concerned that the second wave of coronavirus infections could lead to severe lockdown restrictions. This, along with the likelihood of an economic slowdown continued boosting the greenback’s status as the global reserve currency.
Friday’s disappointing release of the US Durable Goods Orders added to the market worries. In fact, the headline orders recorded a modest growth of 0.4% in August, marking a sharp deceleration from the previous month’s upwardly revised reading of 11.7%.
Meanwhile, a weaker opening in the US equity markets, amid skepticism over the next round of the US fiscal stimulus measures and which tends to undermine the safe-haven Swiss franc, did little to hinder the USD/CHF pair’s bullish trajectory.
Hopes that the US Congress could break months-long impasse to agree on the next round of fiscal stimulus measures revived after a key lawmaker said that Democrats in the US House of Representatives were working on a $2.2 trillion package that could be voted on next week.
The ongoing momentum seems strong enough to push the pair further beyond the 0.9300 mark, towards 100-day SMA, around the 0.9340-45 region. Nevertheless, the USD/CHF pair remains on track to end the week on an upbeat note and record its highest weekly close since July.
Technical levels to watch
Share
