“¢ Escalating US-China trade tensions underpin CHF’s safe-haven demand and exert some pressure.
“¢ The USD shows some resilience despite sliding US bond yields and helped limit any deeper losses.
“¢ Traders now eye today’s US economic data/Powell’s speech for some short-term opportunities.
The USD/CHF pair traded with a mild negative bias through the mid-European session, albeit has managed to recover around 20-pips from daily lows.
Having repeatedly failed to sustain/build on its momentum beyond the 1.0200 handle, the pair witnessed a modest pullback on Thursday and for now, seems to have snapped three consecutive days of winning streak.
The trade standoff between the US and China continued weighing the global risk sentiment and was evident from a sea of red in the equity markets, which seemed to underpin demand for the Swiss Franc’s relative safe-haven status.
Meanwhile, the US Dollar has been showing some resilience despite the risk-off mood-led sharp decline in the US Treasury bond yields and turned out to be one of the key factors helping limit any deeper losses.
The market focus will remain on the start of a two-day high-level US-China trade negotiation and the outcome should play an important role in driving investors’ risk-appetite and eventually provide some fresh impetus.
Moving ahead, today’s US economic docket, along with a scheduled speech by the Fed Chair Jerome Powell will be looked upon for some short-term trading opportunities during the early North-America session.
Looking at the technical picture, the pair remains well within over two-week-old broader trading band, making it prudent to wait for a convincing break through the range before positioning for a firmer near-term trajectory.
Technical levels to watch
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