“¢ The USD regains some positive traction amid the ongoing uptick in US bond yields.
“¢ The prevalent risk-on mood dents CHF’s safe-haven status and remained supportive.
The USD/CHF pair regained positive traction on the first day of a new trading week, with bulls making a fresh attempt to clear the 1.0020 immediate supply zone.
The pair caught some fresh bids on Monday and was now seen trying to build on the last week’s sudden turnaround from near four-week lows, touched in reaction to failed talks between the US and North Korea.
A follow-through uptick in the US Treasury bond yields, with the yield on the benchmark 10-year government bond climbing further beyond the 2.70%, turned out to be one of the key factors underpinning the US Dollar.
This coupled with the prevalent risk-on mood, amid the latest optimism over a possible resolution to the long-standing US-China trade talks, further weighed on the Swiss Franc’s safe-haven status and remained supportive.
A report from the Wall Street Journal on Sunday clearly suggested that the US and China were close to striking a tariff deal and reach a formal agreement at a summit around March 27 to end their long-standing trade disputes.
It would now be interesting to see if the pair is able to build on the positive momentum or meets with some supply at higher levels amid absent relevant market moving economic releases from the US on Monday.
Technical levels to watch
A follow-through buying has the potential to lift the pair further towards 1.0050 horizontal resistance before bulls aim towards conquering the key 1.0100 psychological hurdle. On the flip side, weakness back below the parity mark might continue to find immediate support near the 0.9980 level, below which the pair could head back towards challenging multi-week lows, around the 0.9925 region.
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