- USD/CHF recovers over 50 pips from weekly lows amid a modest USD uptick.
- Concerns over an imminent global recession might cap any further recovery.
The USD/CHF pair managed to recover the early lost ground to over one-week lows and is currently placed near the top end of its daily trading range, around the 0.9630-35 region.
The pair showed some resilience below the 0.9600 round-figure mark and for now, seems to have stalled this week’s sharp pullback from YTD tops amid a goodish intraday pickup in the US dollar demand.
The greenback stalled its week-long downtrend and gained some positive traction on the last trading day of the week, which seemed to be a key factor behind the pair’s intraday bounce of around 50 pips.
It is worth recalling that the buck has been suffering in the wake of the Fed’s open-ended QE program and was further weighed down by the Chair Jerome Powell’s comments on Thursday.
In a rare interview to NBC Today, Powell hinted towards additional monetary easing and said that there is still room for more action to support the struggling economy amid coronavirus crisis.
Thursday’s unprecedented rise in the US weekly jobless claims underscored the devastating impact on the US economy and largely offset optimism over the $2.2 trilling US economic stimulus package.
It, however, remains to be seen if the pair is able to capitalize on the move amid mounting fears over an imminent global recession, which tends to underpin the Swiss franc’s safe-haven demand.
Technical levels to watch