USD/CHF moves away from multi-week lows, clings to modest gains above mid-0.9100s
- USD/CHF gained some positive traction on Monday and was supported by a combination of factors.
- Fading safe-haven demand weighed on the CHF and remained supportive amid a modest USD bounce.
The USD/CHF pair edged higher through the early North American session and refreshed daily tops, around the 0.9155-60 region in the last hour.
A combination of factors assisted the pair to stage a modest bounce from the 0.9120 area, or the lowest level since early March and recovered a major part of Friday's losses. The underlying bullish tone in the financial markets undermined demand for the safe-haven Swiss franc and extended some support to the USD/CHF pair.
The risk-on flow pushed the US Treasury bond yields higher across the board and helped the US dollar to stall its recent decline to multi-week lows. This was seen as another factor that provided a modest lift to the USD/CHF pair. The USD bulls largely shrugged off and seemed unaffected by the release of mixed US Durable Goods Orders.
According to data released by the US Census Bureau, the headline orders recorded a modest growth of 0.5% in March as against consensus estimates pointing to an increase of 2.5%. The disappointing reading, to some extent, was offset by mostly in line core durable goods orders, which rose 1.6% during the reported month.
The data did little to influence market expectations that the Fed will keep interest rates low for a longer period. Hence, the key focus will remain on the FOMC policy decision on Wednesday. In the meantime, it will be interesting to see if bulls are able to capitalize on the bounce or the USD/CHF pair meets with some fresh supply at higher levels.
Technical levels to watch