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USD/CHF holds steady above 0.9800 handle, up little amid a modest USD rebound

2019-06-21 17:55

  • A solid rebound in the US bond yields helped ease the USD bearish pressure.

  • A modest USD uptick prompts some short-covering amid oversold conditions.

  • Market participants now eye US economic docket for some short-term impetus.

The USD/CHF pair struggled to capitalize on its attempted intraday recovery, albeit has managed to hold above the 0.9900 handle and multi-month lows set in the previous session.

After struggling to find acceptance above the parity mark, the pair witnessed a dramatic turnaround on Wednesday in reaction to dovish sounding FOMC statement, which triggered a broad-based US Dollar sell-off. 

The pair remained under some intense selling pressure for the second consecutive session on Thursday and was further weighed down by escalating geopolitical tensions, which tends to benefit the Swiss Franc's safe-haven status.

The downward trajectory dragged the pair to its lowest level since January 10, though bulls showed some resilience at lower levels and managed to defend the 0.9800 round figure mark on a daily closing basis. 

Meanwhile, a modest US Dollar rebound at the start of the European session on Friday - supported by a solid rebound in the US Treasury bond yields, prompted some short-covering move amid near-term oversold conditions.

The uptick, however, lacked any strong conviction as investors now look forward to the US economic docket - featuring the release of flash manufacturing PMI and existing home sales data, for some short-term trading impetus.

Technical levels to watch


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