13 Sep 2017
The USD/CHF pair continued with its struggle to sustain strength above the 0.9600 handle and has now retreated to the lower end of daily trading range, around 0.9590 level.
Improving global risk sentiment, amid easing geopolitical tensions over the Korean Peninsula, had been one of the key factors behind the pair's strong recovery of nearly 200-pips from 2-year lows touched on Friday.
The US Dollar, however, seemed lacking any strong follow through traction and has failed to provide any fresh bullish impetus to the major.
This coupled with a new provocation from North Korea, threatening to accelerate its plans to acquire a nuclear weapon, extended some support to the Swiss Franc's safe-haven appeal and further contribute towards keeping a lid on the pair's up-move.
On the economic data front, the Swiss PPI came-in to show a monthly rise of 0.30% in August, lifting the yearly rate to 0.60% but did little to provide any meaningful impetus.
Later during the day, the US PPI print would also be looked upon for some short-term trading opportunities ahead of SNB's quarterly monetary policy assessment on Thursday.
• Reuters poll - SNB to keep LIBOR target range unchanged until at least Q1 2019
Technical levels to watch
A strong follow through buying interest beyond 0.9615 level is likely to accelerate the up-move towards mid-0.9600s before the pair aims towards testing 100-day SMA hurdle near the 0.9700 handle.
On the flip side, sustained weakness below 0.9585 level could drag the pair towards mid-0.9500s ahead of its next support near 0.9525 area.
Trading foreign exchange on margin carries high potential rewards but also high potential risks that may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience and risk appetite. Past performance is not indicative of future results, which can vary due to market volatility. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this website or linked to from this website are provided as general market commentary and do not constitute investment advice. AUSFOREX does not accept liability for any loss or damage, including any loss or profit, which may arise directly or indirectly from use of or reliance on such information.