- USD/CHF pair fails to get any respite from a combination of supporting factors.
- Bulls seemed rather unimpressed by a solid recovery in the global risk sentiment.
- Rebounding US bond yields underpinned the USD but failed to lend any support.
The USD/CHF pair remained on the defensive through the early European session on Tuesday and is currently placed near the lower end of its daily trading range, around the 0.9570 region.
The pair failed to capitalize on the previous day’s late bounce from near 1-1/2 year lows, rather met with some fresh supply on Tuesday and seemed rather unaffected by a combination of supporting factors.
Bulls still seemed reluctant
Speculations of a coordinated interest rate cut by major central banks led to a solid recovery in the global risk sentiment, albeit did little to dampen demand for perceived safe-haven currencies, including the Swiss franc.
The risk-on flow assisted the US Treasury bond yields to stage a goodish recovery from all-time lows. This eventually helped ease the recent bearish pressure surrounding the US dollar, but failed to impress bulls.
It will now be interesting to see if the pair is able to find any buying interest at lower levels or continues with its ongoing downward trajectory amid absent relevant market-moving US economic releases on Tuesday.
Meanwhile, the G7 teleconference call at 12:00 GMT this Tuesday will draw investors’ attention and might play a key role in providing some meaningful trading impetus/help determine the pair’s next leg of a directional move.
Technical levels to watch
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