USD/CHF takes another U-turn from 21-DMA amid improved risk-tone
- USD/CHF benefits from recent trade-backed risk recovery.
- Geopolitical tension caps the recovery.
- A lack of data keeps the market focus on trade/political news headlines.
Improvement in the market’s risk sentiment triggered the USD/CHF pair’s another bounce off 21-DMA as it takes the bids to 0.9910 during early Tuesday.
The US-China trade-positive comments from the US President Donald Trump and Treasury Secretary Steve Mnuchin triggered risk recovery during the early Asian session. The moves were then carried forward on welcome news of a trade deal between the US and Japan. Also adding to the sentiment was Kyodo News report that mentions the Iranian Foreign Minister Mohammad Javad Zarif’s assurance to his Japanese counterpart that the nation will effort avoiding war amid the Middle East tensions.
As a reaction, the US 10-year Treasury yield stopped further declines to flash 1.71% by the press time while the MSCI’s Index of Asia Pacific shares outside Japan also registers gains.
It should also be noted that upbeat comments from China’s central bank governor and an absence of any troublesome news from the Middle East also pushed traders off safe-havens like the Japanese Yen (JPY), Swiss France (CHF) and Gold.
Given the light economic calendar, investors will keep an eye over the trade/political headlines for fresh impulse.
Technical Analysis
Despite recovering from 21-day simple moving average (DMA) level around 0.9890, the 0.9980/85 area, including monthly top, can keep buyers away from the pair.