- Reviving safe-haven demand benefitted the CHF and exerts some pressure.
- The USD held steady despite softer US data and helped limit the downside.
- The key focus will remain on the highly anticipated FOMC July policy meeting.
The USD/CHF pair held on to its weaker tone post-softer US macro data, with bears looking to extend the slide further below the 0.9900 round figure mark.
The pair traded with a mild negative bias for the second consecutive session on Tuesday and extended its pullback from near three-week tops, touched in the aftermath of upbeat US Q2 GDP growth figures on Friday.
A slight deterioration in the global risk sentiment, triggered by the US President Donald Trump’s trade-related comments, was seen benefitting the Swiss Franc’s relative safe-haven status against its American counterpart.
Meanwhile, the key US Dollar Index held steady near two-week tops despite softer US core PCE price index – the Fed preferred inflation gauge, and seemed to be the only factor that helped limit the downside, at least for now.
Tuesday’s US economic docket also features the release of the Conference Board’s Consumer Confidence Index and might provide some impetus, albeit the key focus will remain on the highly anticipated FOMC July policy meeting.
The Fed is widely expected to cut its benchmark interest rates by 25 bps and hence, the key focus will be on the near-term policy outlook, which will play a key role in determining the pair’s next leg of a directional move.
Technical levels to watch
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