- USD / CHF is trading within a range below the 0.8900 level at the start of the European session.
- The bullish market sentiment weighs on the safe haven CHF and offers some support for the pair.
- The pullback in US bond yields keeps USD bulls on the defensive and limits the pair’s rally.
The pair USD/CHF is struggling to find a firm intraday direction and remains stuck within a narrow range, below the level of 0.8900, during the European session on Thursday.
A combination of divergent factors has failed to provide significant momentum to the pair and led to moderate and limited price action within a range on Thursday. Fall remains supported amid prevailing risk appetite environment, which tends to weigh on the demand for the safe haven Swiss franc.
The market has been valuing prospects for more aggressive fiscal spending in 2021 under the presidency of Joe Biden. Expectations rose further after Biden launched a plan to inject $ 1.9 trillion into the struggling US economy during his first hours as the new US president on Wednesday.
This occurs in the middle of optimism about the launch of coronavirus vaccines and it has fueled hopes of a strong economic recovery. This, in turn, has continued to boost investor confidence and continued to support the current rally in global equity markets.
On the other hand, the US dollar has been under pressure for the fourth day in a row and it has been further pressured by a weaker tone around US Treasury yields. This has been seen as one of the key factors limiting gains and keeping the USD / CHF pair within the trading range of the previous day.
Market participants are now awaiting the release of US macroeconomic data to seize some short-term opportunities. Thursday’s US economic calendar features the release of the Philadelphia Fed Manufacturing Index, initial weekly jobless claims, and housing market data with building permits and home starts.
USD / CHF technical levels
.
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.
