- USD / CHF rallied to the 0.9200 region amid resurgent USD demand.
- A close race for the White House sent investors back to the USD.
- The delay in the final result benefits the safe haven CHF and limits profits.
The pair USD/CHF has had good price movements in both directions during the Asian session on Wednesday and now appears to have stabilized around the 0.9150 region.
After the setback of the previous day and an initial drop below 0.9100, the pair has captured some aggressive buying and has spiked near the 0.9200 level amid a strong rebound in demand for the US dollar. The first results of the US elections indicated a tighter race than expected, which in turn has forced investors to hedge their positions and fueled some aggressive money flows towards the US dollar.
In fact, betting markets indicate incumbent President Donald Trump is now the favorite to win a second term. However, the fact that there will be a delay in the results of key states on the battlefield (Wisconsin, Michigan and Pennsylvania) has fueled uncertainty and has affected investor sentiment, ultimately benefiting the safe-haven Swiss franc and has limited the rise of the USD / CHF pair.
The combination of factors has prevented investors from opening aggressive directional positions and has led to a modest intraday pullback of around 35 pips. However, the USD / CHF pair has managed to hold on to modest daily gains as the market’s focus remains firmly glued to political developments in the world’s largest economy.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
