- USD/CHF regained strong positive traction on Tuesday amid a broad-based USD strength.
- The risk-off mood did little to benefit the safe-haven CHF or hinder the intraday move up.
- Investors look forward to comments from US policymakers for a fresh trading impetus.
A strong pickup in the USD demand pushed the USD/CHF pair back closer to the 0.9300 mark, or fresh daily tops during the first part of the European session.
The pair managed to regain positive traction on Tuesday and has now recovered a major part of the overnight losses to the 0.9220-15 support zone. This marked the third day of a positive move in the previous four and was exclusively sponsored by a broad-based US dollar strength.
Following the previous day’s modest pullback, the greenback was back in demand and remained well supported by the prospects for a relatively faster US economic recovery. The USD bulls seemed rather unaffected by the ongoing retracement slide in the US Treasury bond yields.
Even the prevalent risk-off mood, which tends to benefit the safe-haven Swiss franc, also did little to dent the intraday bullish sentiment surrounding the USD/CHF pair. Investors turned cautious after a coordinated Western action against Chinese officials over human rights abuses.
With the USD price dynamics turning out to be an exclusive driver of the USD/CHF pair’s movement, investors will look forward to comments from top US policymakers for a fresh impetus. The Fed Chair Jerome Powell and Treasury Secretary Janet Yellen’s joint testimony are scheduled to testify before the Financial Services Committee later this Tuesday.
In their prepared remarks for delivery to the Financial Services Committee, both Powell and Yellen painted an optimistic picture for the US economy. Any further hawkish shift should be enough to provide an additional boost to the greenback and allow the USD/CHF pair to aim back towards retesting nine-month tops, around the 0.9375 region touched earlier this month.
Technical levels to watch
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