The USDCHF pair continued a three-day uptrend momentum while testing the 0.9300 price during a quiet Asian session on Wednesday. The US Dollar Index posted a three-day rally to show off a 10-month peak surrounding 93.80, before easing to 93.72.
The risk aversion wave took clues from the mounting concerns over the US Federal Reserve’s (Fed) imminent tapering of bond purchases, as well as fears concerning China and Evergrande. Also weighing on the sentiment were downbeat data from China and the US. The US 10-year Treasury yields soared to the highest levels since mid-June while the US stock exchanges closed in the red as traders rushed for risk-safety.
Nevertheless, the latest headlines are suggesting that the US POTUS Joe Biden’s canceled a visit to Chicago to lead talks over his legislative agenda seems to generate chances of a potential deal over the much-awaited headlines, namely the US stimulus and debt limit expansion.
Today investors will be watching the Swiss ZEW Survey where expectations for September, previous -7.8, will offer a fresh direction to the USDCHF prices ahead of the Fed speech and the second-tier US housing numbers. In conclusion, headlines concerning stimulus, debt limits and China will be the key to follow for a new momentum.
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