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  • China Foreign Ministry reportedly said it hopes US  can meet halfway on trade.
  • 10-year US Treasury bond yield erases some of today’s losses.
  • US Dollar Index stays below 98 ahead of mid-tier data.

The USD/CHF pair continues to react to changes in the market sentiment and fluctuates sharply amid the low trading volume due to the holiday in major European markets. After touching a daily low of 0.9722 in the last hour, the pair retraced its losses and was last up 0.13% on the day at 0.9745.

US-China trade headlines continue to impact sentiment

Earlier today, China repeated its commitment to take countermeasures if the United States imposes 10% additional tariffs next month and said this decision by the US violated the agreement that sides had reached at the G20 summit in Osaka back in late June.

Although this announcement triggered heavy risk-off flows and weighed on the US Treasury bond yield and European stock markets while ramping up the demand for safe-havens such as gold, JPY and the CHF, some fresh headlines on the US-China trade dispute helped the market sentiment improve slightly.

Several news outlets in the last minutes reported that China Foreign Ministry said that it hoped the US could meet China halfway on trade talks. The 10-year US T-bond yield, which lost  nearly 4% earlier in the session, erased some of its losses and was last down 2% on the day. Additionally, the S&P 500 Futures is now up 0.55% on the day, suggesting that Wall Street could open higher and try to recover Wednesday’s losses.

Technical levels to watch for