USD / CHF flirts with session highs, around 0.9270 area before US ISM services PMI.

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  • A combination of factors helped the USD / CHF regain some positive traction on Tuesday.
  • The USD remained well supported by expectations of an early policy tightening by the Fed.
  • The risk appetite boost undercut the safe haven CHF and continued to support the move.

The pair USD/CHF it maintained its intraday gains for the middle of the euro session and was last seen hovering near the upper end of its daily trading range, around the 0.9265-70 region.

A combination of factors helped the USD / CHF pair to regain positive traction on Tuesday and to recover some of the previous day’s losses to highs of more than a week. A solid rally in global equity markets undermined the safe-haven Swiss franc. Apart from this, a good recovery in demand for US dollars provided an additional boost to the pair.

The USD continued to gain some support from firm expectations that the Fed would begin to reduce its massive pandemic-era stimulus as early as November. Markets also appear to have started to appreciate the prospects for an interest rate hike in 2022. This, coupled with a rally in US Treasury yields, acted as a tailwind for the dollar. .

With Tuesday’s bullish move, the USD / CHF pair, for now, appears to have broken three consecutive days of the losing streak and stalled its recent pullback from nearly six-month highs. However, it remains to be seen if the bulls can capitalize on the move or if the pair finds a fresh supply at higher levels ahead of the US monthly jobs report (NFP) on Friday.

Market participants are now awaiting the launch of the ISM Services PMI. Aside from this, US bond yields and a scheduled speech by Fed Governor Randal Quarles could influence USD price dynamics. Traders will follow the signals of the broader market risk sentiment to seize some short-term opportunities around the USD / CHF pair.

Technical levels


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