- The USD / CHF is gaining ground for the third consecutive session on Wednesday.
- A US-Chinese spat has strengthened the status of the USD as the world’s reserve currency.
- The risk climate weighed on the CHF safe haven and remained favorable.
Dollar buying interest has accelerated in the past hour and pushed the USD / CHF pair to near week highs around the 0.9755-60 region in the past hour. hour.
A combination of support factors helped the pair gain ground for the third consecutive session on Wednesday and build on its recent rebound from levels below 0.9600, or the month-long lows set on May 1. .
The greenback continued to benefit from its status as a global reserve currency amid worsening US-China relations on the origin of the coronavirus and was also supported by strong sales around its European counterparts.
Meanwhile, the latest optimism regarding the reopening of economies in some parts of the world was evident from a positive mood around the global stock markets. This, in turn, undermined the demand for the safe haven of the Swiss franc and remained favorable.
It will now be interesting to see if the pair is able to take advantage of the momentum or continue its fight to cross the very important 200-day SMA barrier, just before the 0.9800 mark.
Looking ahead, Wednesday’s US economic report highlights the release of the ADP report on private sector employment, which could influence price dynamics in USD and give new momentum later at the start of the North American session. .