The USD/CHF pair is showing strength to deliver a break above 0.9280 in the early Asian session, despite the risk-off sentiment in the markets. The Swiss Franc asset is struggling to deliver more gains amid the risk aversion theme. An upbeat preliminary United States S&P PMI (Feb) data has cleared that the economic activities are getting expansionary again, which could be the result of a rebound in consumer spending. This has led to a sheer fall in the risk-perceived assets as expansionary economic activities support a hawkish view from the Federal Reserve (Fed).
S&P500 futures are offering mild gains in the early Tokyo session, however, the overall sentiment is still risk-off. The US Dollar Index (DXY) is struggling to extend gains above 103.90, however, the upside looks favored as volatility in the FX domain might remain high ahead of the Federal Open Market Committee (FOMC) minutes. Rising odds of more rates announcement by the Fed in its March monetary policy meeting are fueling US treasury yields. The return on 10-year bonds has jumped to near 4%.
On the Swiss Franc front, the commentary from Swiss National Bank (SNB) Vice Chairman Martin Schlegel failed to provide strength to the Swiss franc. SNB Schlegel cited the central bank is “still willing” to be active in the foreign currency markets in pursuing its goal of price stability.
USD/CHF has successfully tested the breakout of the downward-sloping trendline placed from November 21 high around 0.9600 on a four-hour scale. Usually, a successful test of a trendline breakout with an absence of solid downside pressure indicates the strength of bulls and prepares a platform for a confident upside move ahead. The Swiss Franc asset has confidently shifted its auction above the 200-period Exponential Moving Average (EMA) at 0.9245. Meanwhile, the Relative Strength Index (RSI) (14) is looking to enter into the bullish range of 60.00-80.00.
The US Dollar Index (DXY) has been trading in a range of 103.50-103.90 for the past few days, however, the upside looks favored as volatility in the FX domain might remain high ahead of the Federal Open Market Committee (FOMC) minutes. The return on 10-year bonds has jumped to near 4% amid the risk aversion theme.
The Swiss Franc asset has successfully tested the breakout of the downward-sloping trendline placed from 0.9600. The USD/CHF pair is gathering strength to deliver a break above 0.9280 in the early Asian session. The Swiss franc asset is struggling to deliver more gains despite the risk aversion theme underpinned by the market participants.
An upbeat preliminary United States S&P PMI (Feb) data cleared that the economic activities are getting expansionary again, which could be the result of a rebound in consumer spending. This led to a sheer fall in the risk-perceived assets as expansionary economic activities support a hawkish view from the Federal Reserve (Fed). The USD/CHF pair is aiming to deliver a break above 0.9280 amid the risk aversion theme.
In light of the risk aversion theme, the USD/CHF pair is likely to remain supported. The pair is expected to continue to rise as long as the US Dollar Index (DXY) remains above the 103.50-103.90 range. The Swiss Franc asset has successfully tested the breakout of the downward-sloping trendline placed from 0.9600 and is looking to deliver a break above 0.9280 in the early Asian session.
Rising odds of more rates announcement by the Fed in its March monetary policy meeting are fueling US Treasury yields. The return on 10-year bonds has jumped to near 4%. The Swiss Franc asset has confidently shifted its auction above the 200-period Exponential Moving Average (EMA) at 0.9245. Meanwhile, the Relative Strength Index (RSI) (14) is looking to enter into the bullish range of 60.00-80.00.
The commentary from Swiss National Bank (SNB) Vice Chairman Martin Schlegel failed to provide strength to the Swiss franc. SNB Schlegel cited the central bank is “still willing” to be active in the foreign currency markets in pursuing its goal of price stability. In conclusion, the USD/CHF pair is likely to remain supported as long as the US Dollar Index (DXY) remains above the 103.50-103.90 range. Rising odds of more rates announcement by the Fed in its March monetary policy meeting are fueling US Treasury yields, which is likely to continue to support the USD/CHF pair.
