- USD / CHF failed to sustain intraday gains after reaching highs of more than a month.
- The Swiss franc is among the best performers in Europe.
- A modest pickup in demand for the dollar provided support and helped limit the pair’s losses.
He USD / CHF fell around 20-25 pips from the daily highs and is currently near the lower end of its intraday trading range, around the 0.8900 zone.
The pair struggled to capitalize on its intraday rally to more than a month highs, instead finding a supply zone near the 0.8925 region amid the prevailing cautious climate. Concerns about the potential economic fallout from escalating COVID-19 cases weighed on investor sentiment. This, in turn, benefited the Swiss franc and limited the rise of the USD / CHF pair.
Even the growth data of ChinaBetter than expected on Monday, which showed the world’s second-largest economy growing 6.5% over the October-December period, did little to change the market’s mood. That said, a modest pickup in US dollar demand extended some support to USD / CHF and could become the only factor helping to limit the decline, at least for now.
In fact, The US dollar was firm near a four-week high and did not appear to be affected by the recent pullback in US Treasury yields.
Without data ahead and with the US holiday, the volume of operations would be expected to tend to fall. Information about the coronavirus will play a key role in driving market sentiment, as well as what happens to Wall Street futures.
Technical levels
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