- The rebound in the US dollar from 0.9225 hits the 0.9280 area.
- The dollar appreciates thanks to the rise in yields on US Treasury bonds.
- USD / CHF remains biased upward over the long term – Credit Suisse.
The US dollar regained lost ground on Tuesday, after three consecutive days in the red, after rebounding to a low of 0.9225 and returning to levels near 0.9300. The safe haven Swiss franc lost ground against a backdrop of moderate risk appetite and a somewhat firmer US dollar.
US dollar, supported by rising US yields
The greenback rebounded against most of its major rivals on Tuesday, regaining lost ground amid higher US Treasury yields and a moderate appetite for risk, with major global equity markets posting a positive tone.
Investors remain largely cautious, however, with all eyes on the September US employment data release expected on Friday. The market is bracing for a sharp increase in the private wage bill to prompt the Federal Reserve to officially announce the end of the quantitative easing program at the November meeting.
In addition, macroeconomic data showed that the US trade deficit was at its highest level on record, with a shortfall of $ 73.3 billion while, on the positive side, activity in the US service sectors grew. improved in September, although commodity shortages pushed prices up, weighing on job growth.
USD / CHF long-term risk remains higher – Credit Suisse
From a broader perspective, Credit Suisse’s currency analysis team remains bullish on key resistance at 0.9356 / 70: “We are looking for trend and price support at 0.9214 / 12 to try to hold with resistance seen at 0.9281 initially, with a break above 0.9324 needed to pave the way for a retest of 0.9356 / 70. Beyond here it would mark a significant breakout to the upside with little significant resistance to the April high of 0.9473. ”