USDCHF eases from 6-week tops, takes a breather near mid-0.9900s

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.


This article was provided by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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