USD/CHF slides farther below 0.9900 mark, flirting with weekly lows
- On offers for the second straight session amid weaker USD.
- Bulls seemed unimpressed by the prevalent risk-on mood.
- Friday’s US retail sales data eyed for a fresh trading impetus.
The USD/CHF pair traded with a negative bias through the early European session on Friday and is currently placed at the lower end of its weekly trading range, around the 0.9870 region.
The pair extended overnight rejection slide from the very important 200-day SMA and remained under some selling pressure for the second consecutive session on Friday. The pair has now surrendered all of its weekly gains to the highest level since early-August and bulls seemed rather unimpressed by the prevailing risk-on mood, which tends to undermine demand for the Swiss Franc's safe-haven demand.
Weaker USD Offsets US-China Trade Optimism
Encouraging signs that the United States and China were narrowing their differences over trade remained supportive of improving global risk sentiment, which was further reinforced by a follow-through pickup in the US Treasury bond yields. The US Dollar, however, failed to capitalize on recovering bond yields and seemed to be one of the key factors prompting some long-unwinding trade.
It will now be interesting to see if the pair is able to attract any buying interest at lower levels or the current pullback marks the end of the recent recovery move from multi-month lows set on August 13. Market participants now look forward to the US economic docket - highlighting the release of monthly retail sales data - in order to grab some meaningful trading opportunities later during the early North-American session.
