- The pair fails to capitalize on the post-US CPI rebound and witness some fresh selling.
- Cautions mood underpin CHF’s safe-haven demand and added to the downward pressure.
- Friday’s release of the US PPI print for June and Fedspeak now eyed for some fresh impetus.
The USD/CHF pair came under some renewed selling pressure on Friday and has now moved within the striking distance of weekly lows, set in the previous session.
It is worth recalling that the pair on Thursday witnessed an intraday turnaround and rallied around 60-pips in reaction to hotter-than-expected US core CPI figures, which tempered expectations for an aggressive monetary easing by the Fed.
This was evident from a follow-through pickup in the US Treasury bond yields, though failed to provide any meaningful bullish impetus to the US Dollar or assist the pair to extend the momentum further beyond the 0.9900 handle.
Meanwhile, the prevalent cautions mood around equity markets, amid persistent US-China trade tension, underpinned the Swiss Franc’s safe-haven demand and further collaborated to the pair’s weaker tone through the European session on Friday.
It would now be interesting to see if the pair is able to find any buying interest at lower levels or the current pullback marks the end of the recent corrective bounce from yearly lows or nine-month lows touched on June 25.
Moving ahead, Friday’s US economic docket – featuring the release of PPI figures for June, coupled with comments by Chicago Fed President Charles Evans will now be looked upon for some short-term trading opportunities later during the early North-American session.
Technical levels to watch
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