USD/CHF trades with modest losses, but holds above 0.9900 handle
Our preference: short positions below 0.9930 with targets at 0.9890 & 0.9880 in extension.Alternative scenario: above 0.9930 look for further upside with 0.9945 & 0.9960 as targets.
The prevalent cautions mood underpinned CHF’s safe-haven demand.
The USD remained on the defensive amid firming Fed rate cut expectations.
The downside remained limited amid a modest uptick in the US bond yields.
The USD/CHF pair edged lower on Friday and eroded a major part of the previous session positive move,
albeit managed to find some support ahead of the 0.9900 handle.
Having climbed to over one-week tops, around the 0.9930 region, the pair witnessed a modest pullback and for now,
seems to have snapped four consecutive days of winning streak. Reviving safe-haven demand, amid a softer mood around equity markets,
underpinned the Swiss Franc and was seen as one of the key factors exerting some downward pressure on the major.