USD/CHF looks for fresh clues to stay on recovery mode
- USD/CHF bounces off 100-day EMA amid broad USD strength.
- Market sentiment stays sluggish amid a lack of clarity on the US-China trade deal.
- Fedspeak keeps the traders guessing amid a mixed data flow.
With the US Dollar Index (DXY) running over the fresh three-week top, USD/CHF reverses previous pullback from the month’s high. However, absence of major catalysts continues to restrict the pair’s moves around 0.9925 amid the initial trading session on Thursday.
Updates concerning the trade deal between the United States (US) and China have been mixed with the Trump administration reportedly mulling over canceling the December tariff hike, as per Fox Business. Though, news from the Wall Street Journal that the US collected record tariffs in September may not give a good start to the “Phase One” talks, expected in December as per Reuters.
Elsewhere, the Federal Reserve (Fed) officials have been flashing mixed signals during their latest public appearances. Recently, New York Federal Reserve President John Williams kept a check on expectations of the US reaching 2.0% inflation while also praising the current monetary policy.
Reuters keep expectations of further US dollar (USD) increase on the table while releasing survey results of 56 analysts who said the dollar’s dominance would run for at least another six months, and a quarter expected the currency to remain strong for more than two years.
The US 10-year treasury yields seesaw around 1.81% with downbeat trading of Asian stocks. S&P 500 Futures also mark 0.10% loss by the press time.
Looking forward, traders may follow weekly Jobless Claims and comments from the President and CEO of the Federal Reserve Bank of Dallas, Robert Kaplan, for fresh impulse. It’s worth mentioning that Swiss Foreign Currency Reserve numbers for October, 777B prior, will also decorate the economic calendar.
Technical Analysis
Following its bounce off 100-day Exponential Moving Average (EMA) level of 0.9908 prices can again rise towards 0.9940/45 and late-October high close to 0.9970 ahead of aiming 1.000 mark. Alternatively, bears look for entry below October month low near 0.9837.