USD/CHF jumps to one-week tops, eyeing a move beyond 0.9100 mark
- USD/CHF edged higher for the second consecutive session on Tuesday amid a modest USD uptick.
- Coronavirus jitters continued underpinning the greenback’s status as the global reserve currency.
- Stability in the equity markets dented demand for the safe-haven CHF and remained supportive.
A modest pickup in the USD demand pushed the USD/CHF pair to one-week tops in the last hour, with bulls now eyeing a move beyond the 0.9100 round-figure mark.
The pair added to the previous day's positive move and gained some follow-through traction for the second consecutive session on Tuesday. The uptick was supported by the emergence of some fresh buying around the US dollar and signs of stability in the equity markets, which tends to undermine the safe-haven Swiss franc.
Investors remained concerned that the continuous surge in new coronavirus cases around the world might force countries to impose new lockdown restriction and derail the already fragile global economic recovery. This was seen as a key factor that continued benefitting the greenback's status as the global reserve currency.
Apart from this, the slow progress in the US stimulus talks further dampened the market mood and triggered a selloff in the US equity markets on Monday. However, a modest bounce in the US equity futures pointed to a slight improvement in the global risk sentiment and drove investors away from traditional safe-haven assets.
Despite the supporting factors, the USD/CHF pair lacked bullish conviction amid uncertainty about the actual outcome of the upcoming US election on November 3. It is worth reporting that the market might have already started pricing in a strong Democratic victory, which, in turn, might hold the USD bulls from placing aggressive bets.
This makes it prudent to wait for some strong follow-through buying before confirming that the USD/CHF pair might have formed a strong base near the key 0.9000 psychological mark and positioning for any further appreciating move.
Market participants now look forward to the US economic docket, highlighting the release of Durable Goods orders data. This, along with the broader market risk sentiment, the US stimulus headlines and development surrounding coronavirus saga, will be looked upon to grab some meaningful trading opportunities.
Technical levels to watch