“¢ The latest trade-related headlines triggered a fresh wave of global risk-aversion trade.
“¢ Safe-haven flows benefitted the CHF and prompted some fresh selling at higher levels.
The USD/CHF pair extended its intraday pullback from near one-week tops and dropped to fresh session lows, around the 1.0085 region in the last hour.
Having touched an intraday high level of 1.0121, the pair witnessed an intraday turnaround amid reviving safe-haven demand in reaction to reports that China is considering suspending business with suppliers who agreed to halt supplying Huawei and may temporarily hike tariffs for Apple.
The news added to the recent concerns over a further escalation in the US-China trade tensions and triggered a fresh wave of global risk-aversion trade, which was evident from a sea of red across the European equity markets and benefitted the Swiss Franc’s relative safe-haven status.
The global flight to safety was further reinforced by a modest drop in the US Treasury bond yields, which coupled with a subdued US Dollar demand failed to lend any support or stall the pair’s sharp intraday slide of around 35-pips – back below the 1.0100 round figure mark.
The pair has now erased all of its gains recorded in the previous two trading session and a follow-through weakness, possibly towards testing the 1.0060-50 support area amid absent relevant market moving US economic releases, now looks a distinct possibility.
Technical levels to watch
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