USD/CHF climbs back above mid-0.9100s amid modest USD strength, positive risk tone – by hareshmenghani USDCHF Fed Bonds RiskAppetite Currencies
ir climbs back above mid-0.9100s during the early European session and looks to build on its recovery from a six-week low touched on Monday.
A further rise in the US Treasury bond yields lends some support to the US Dollar, which, in turn, is seen acting as a tailwind for the USD/CHF pair. Despite uncertainties over the US banking system, investors seem convinced that the Federal Reserve might still go ahead with a smaller 25 bps rate hike at its next policy meeting on March 21-22. The bets were lifted by the US consumer inflation figures released on Tuesday and continue to push the US bond yields higher.
Furthermore, signs of stability in the financial markets seem to undermine the safe-haven Swiss Franc and turn out to be another factor offering support to the USD/CHF pair. Investors piled back into stocks, which led to the overnight relief rally on Wall Street, amid easing fears about a broader systemic crisis from the sudden collapse of Silicon Valley Bank . The spillover effect remains supportive of a generally positive tone around the equity markets.
The aforementioned fundamental backdrop favours the USD bulls and supports prospects for some meaningful appreciating move for the USD/CHF pair. Market participants now look to the US economic docket, featuring the release of the, monthly Retail Sales figures and the Empire State Manufacturing Index later during the early North American session. Apart from this, the US bond yields might influence the USD price dynamics.
Traders will further take cues from the broader risk sentiment to grab short-term opportunities around the USD/CHF pair. The market focus, however, will remain glued to a two-day FOMC monetary policy meeting, starting next Tuesday, which will drive the USD in the near term and determine the next leg of a directional move for the major. Hence, it will be prudent to wait for strong follow-through buying before confirming that spot prices have bottomed out.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CHF struggles near 0.9100 mark, stronger USD lends support ahead of US CPIThe USD/CHF pair attracts fresh selling following an early uptick to the 0.9145 region on Tuesday and remains on the defensive through the mid-Europea
Read more »
USD/CHF and USD/JPY pops will inevitably be faded – TDSUS inflation remains stubbornly high. With core prices rising at an accelerated pace of 0.5% in February, terminal pricing has moved higher. The repri
Read more »
USD/CHF finds cushion around 0.9100 as focus shifts to US InflationThe USD/CHF pair has sensed an intermediate cushion near the round-level support of 0.9100 in the early Asian session. The Swiss franc asset is gather
Read more »
USD/CHF Price Analysis: Bulls showing their cards for a significant correctionUSD/CHF is attempting to recover from the lows of 0.9108 with highs of 0.9135 in sight while being 0.14% up on the day so far. As illustrated in the f
Read more »
USD/CHF Price Analysis: Buyers moved in, but sellers are loomingUSD/CHF trims some of its Monday losses and shifts positively on Tuesday, gaining 0.47%. The USD/CHF is trading at 0.9151 after hitting a daily low of
Read more »
USD/CHF looks capped below 0.9150 as US Inflation worries fade, US Retail Sales eyedThe USD/CHF pair is juggling in a narrow range below 0.9150 in the early Asian session. The upside in the Swiss Franc asset looks capped as the United
Read more »