Yesterday, the USDCHF pair fluctuated between moderate gains and minor losses through the first half of the European session and was last seen trading in the neutral territory, around the 0.9130 area.
A blend of conflicting powers failed to provide any meaningful momentum to the USDCHF pair but instead led to a range-bound price action near one-week lows touched earlier this Tuesday. The risk-on signal weakened the safe-haven Swiss franc and extended some support with the prevalent US dollar selling bias acted as a headwind for the major.
The global risk sentiment got more positive as after the US FDA granted full approval to the Pfizer/BioNTech covid-19 vaccine.
Meanwhile, the constant rise in new covid-19 cases might have pushed back expectations for the likely timing of the Fed’s tapering plan. Investors are now convinced that the Fed will wait longer before rolling back its pandemic-era stimulus. This was seen as a key element that contributed to the USD’s ongoing pullback from multi-month lows.
Market participants now look forward to the US economic calendar, featuring the second-tier releases of New Home Sales and Richmond Manufacturing Index. These data will do little to offer any meaningful momentum, though the broader market risk sentiment might still produce some short-term trading opportunities around the USDCHF pair.
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