The USDCHF pair trimmed a part of its early strong gains and has now retreated around 25-pips from six-week tops set earlier this Thursday.
1 August 2019, GKFX – The pair stalled its post-FOMC upsurge from sub-0.9900 level and failed just ahead of the very important 200-day SMA, with a modest US Dollar pullback from two-year tops prompting some profit-taking at higher levels.
USDCHF fundamental highlights
Despite the expected rate cut, the fact that the Fed Chair Jerome Powell downplayed scope for significant easing triggered a fresh leg of an upsurge in the greenback and helped the pair to build to the recent positive momentum.
It is worth reporting that Powell on Wednesday, during the post-meeting press conference, described Wednesday’s rate cut as a mid-cycle adjustment of policy and not necessarily the beginning of a series of rate cuts.
Meanwhile, a slight deterioration in the global risk sentiment, as depicted by a cautious mood around equity markets, underpinned the Swiss Franc’s safe-haven demand and further collaborated to the pair’s intraday downtick.
Moving ahead, Thursday’s US economic docket – highlighting the release of ISM manufacturing PMI, will now be looked upon for some short-term trading impetus later during the early North-American session.
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