USD/CHF remains capped below parity mark ahead of US macro data
- The USD/CHF pair remained well supported by US-China trade optimism.
- A modest pickup in the US bond yields further underpinned the USD.
- Investors eye US macro releases for some meaningful trading impetus.
The USD/CHF pair traded with a mild positive bias through the early European session Wednesday, albeit remained well within a three-day-old trading range below the parity mark.
The prevalent risk-on mood, as depicted by a positive trading sentiment around the global equity markets, was seen weighing on the Swiss franc's perceived safe-haven status and continued lending some support to the major.
Traders turn cautious ahead of US macro data
The US President Donald Trump's overnight comments, saying that we are in the final throes of a very important deal with China added to the recent optimism and remained supportive of the improving global risk sentiment.
Against the backdrop of positive trade rhetoric, some renewed uptick in the US Treasury bond provided a minor lift to the US dollar and further collaborated to the pair's bid tone, albeit bulls seemed to lack any strong conviction.
Investors refrained from placing any aggressive bets, rather preferred to stay on the sideline ahead of Wednesday's important US macro releases – Durable Goods Orders and the second estimate of the Q3 GDP growth figures.
Hence, it will be prudent for some strong follow-through buying, possibly beyond the parity mark, before traders start positioning for any further near-term appreciating move towards October monthly swing high resistance.
Technical levels to watch