USD/CHF sits near session tops, lacks follow-through beyond mid-0.9600s
- Resurgent USD demand assisted USD/CHF to gain some positive traction on Monday.
- Deteriorating risk sentiment benefitted the CHF’s safe-haven status and capped gains.
The USD/CHF pair refreshed daily tops in the last hour, albeit lacked any strong follow-through buying beyond mid-0.9600s.
The pair gained some positive traction and built on the previous session's modest bounce from sub-0.9600 levels or one-month lows. The pair, for now, seems to have snapped three consecutive days of a winning streak and the uptick was led by a goodish pickup in the US dollar demand.
A US-China spat over the origin of the coronavirus added to persistent worries over the economic fallout from the pandemic-induced lockdowns. This, in turn, boosted the greenback's status as the global reserve currency and was seen as a key factor driving the pair higher.
Meanwhile, a further deterioration in the global risk sentiment, as depicted by a sea of red across the global equity markets, underpinned the Swiss franc's safe-haven demand and kept a lid on any additional gains for the major, at least for the time being.
There isn't any major market-moving economic data due for release from the US on Monday. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in producing some meaningful trading opportunities.
Moving ahead, this week's other important US macro data scheduled at the start of a new month, including the closely watched US monthly jobs report, will now be looked upon for a fresh directional impetus along with any further developments surrounding the coronavirus saga.
Technical levels to watch