USD/CHF trades with modest gains, around mid-0.9900s ahead of Trump’s speech

• Renewed USD buying interest helped the pair to regain positive traction.
• The cautious mood seemed to cap further gains ahead of Trump’s speech.

The USD/CHF pair trimmed a part of its early gains but has still managed to hold with modest daily gains around mid-0.9900s.
 
The pair managed to regain some positive traction on Tuesday and recovered a major part of the overnight sharp intraday pullback from near four-week lows, albeit continued with its struggle to find acceptance or extend the momentum further beyond the very important 200-day SMA.

Focus remains on trade developments

Some renewed US Dollar buying interest was seen as one of the key factors fueling the pair’s intraday positive momentum. However, the prevalent cautious mood underpinned demand for traditional safe-haven currencies – including the Swiss Franc – and capped any additional gains.
 
Investors remained cautious after the US President Donald Trump said that reports to roll back tariffs on Chinese goods as a part of the trade deal were “incorrect.” Hence, the key focus will be on Trump’s appearance at the New York Economic Club later this Tuesday.
 
In absence of any major market-moving economic releases, the incoming trade-related headlines might continue to influence the USD price dynamics, which coupled with the broader market risk sentiment might contribute towards producing some meaningful trading opportunities.
 
Moving ahead, this week’s other US macroeconomic releases, including the latest consumer inflation figures and monthly retail sales data, along with the Fed Chair Jerome Powell’s two-day testimony on Wednesday and Thursday will now be looked upon for a fresh directional impetus.

Technical levels to watch