- USD / CHF regains positive traction on Monday supported by a combination of factors.
- Risk appetite weighs on the safe haven CHF and offers some support for the pair.
- Rising US bond yields benefit the USD and continue to support positive intraday movement.
The pair USD / CHF maintains its bullish tone during the first half of the European session on Monday and has risen to new daily highs, around the region of 0.9010, in the last hour.
A combination of factors has helped the pair regain positive traction on Monday and recover a part of the previous day’s retracement drop from the 0.9045 region, at highs of more than two months. The feeling of prevailing optimism in the market has weighed on the safe haven Swiss franc. This, coupled with renewed buying interest around the US dollar, has continued to support the intraday rally in the USD / CHF pair.
Global risk sentiment has remained supported by the Hopes for a Strong Economic Recovery Amid Progress in Coronavirus Vaccines and the Likelihood of Massive U.S. Fiscal Spending. Expectations of increased government borrowing to fund the stimulus have pushed the yield on the benchmark 10-year US bond to the highest level in nearly a year, benefiting the USD.
Friday’s unimpressive NFP report, which showed the US economy added 49,000 jobs in January, has strengthened the case for additional fiscal measures to support the economy. Expectations for a massive US stimulus package have risen further after the country’s Senate passed a budget resolution to accelerate approval of President Joe Biden’s $ 1.9 trillion proposed coronavirus relief plan without Republican support.
From a technical perspective, the recent above the 0.8920-25 resistance zone and the emergence of buying at lower levels support the prospects for additional gains. The bulls could look to take advantage of the momentum beyond the 100-day SMA, with the USD / CHF preparing to retest last week’s high, around the 0.9045 region, amid the absence of data releases. relevant economics on Monday.
USD / CHF technical levels
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