- USD/CHF failed to capitalize on its early uptick and faced rejection near the 0.9200 mark.
- The USD struggled to preserve early gains and was seen as a key factor exerting pressure.
- The risk-on mood might undermine the safe-haven CHF and help limit any deeper losses.
The USD/CHF pair extended its intraday rejection slide from the 0.9200 mark and refreshed daily lows during the early European session.
The US dollar struggled to preserve its early gains amid uncertainty over the next round of the US fiscal stimulus measures. In fact, the USD Index has now drifted into the negative territory, which, in turn, was seen as one of the key factors that prompted some fresh selling around the USD/CHF pair.
Meanwhile, a decline in COVID-19 hospitalizations in the US strengthened the case for a swift economic recovery. This, coupled with some strong follow-through uptick in the US Treasury bond yields should extend some support to the greenback and help limit deeper losses for the USD/CHF pair.
The downside might also be cushioned by the prevalent risk-on mood, which tends to undermine the Swiss franc’s perceived safe-haven demand. The global risk sentiment remained well supported by the latest optimism over a potential vaccine for the highly contagious coronavirus diseases.
The USD/CHF pair was last seen trading just above 0.9100 mark as investors now look forward to the release of the US consumer inflation figures for July. The data might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North American session.
Technical levels to watch
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