USD/CHF bounces from trend-line support on trade news

US/Sino trade teams will consult in mid-September with a view for a meeting in Washington in early October.
USD/CHF is currently trading 0.26% higher and bouning of trend-line support.

Ross J Burland FXStreet

The announcement that trade talks are back on track as given the markets the extra fuel needed to recover with respect to risk appetite. Currencies, such as the Yn and CHF, would otherwise benefit from investment, but in such a case that a trade deal could eventually emerge from the protracted negotiations is pressuring them in Asia today. USD/CHF is currently trading 0.26% higher and bouning of trend-line support.

Vice Premier Liu He who is the head Chinese trade negotiator has been reported to have spoken with Mnuchin and Lighthizer on Wednesday on a phone call and trade teams will consult in mid-September with a view for a meeting in Washington in early October.

Can the US/China finally make something happen?

However, it's hard to see a quick resolution considering the determination of Washington to stand firm on China when issues such as the violation of intellectual property rights, forced technology transfer and Chinese subsidies to state-owned enterprises have not been bridged - that is the sticking point and both nations are as stubborn as the other. Many observers expect China to wait it out to see if Trump loses the 2020 elections.

"In our view the escalation in trade tensions between the US and China is likely to cut around 0.6ppts from world growth through until 2021. This will have ramifications for risk appetite, risky assets and safe-haven demand,"

analysts at Rabobank argued.

USD/CHF levels

USD/CHF

Overview
Today last price	0.9836
Today Daily Change	0.0028
Today Daily Change %	0.29
Today daily open	0.9808

Trends
Daily SMA20	0.9799
Daily SMA50	0.9834
Daily SMA100	0.9939
Daily SMA200	0.9951

Levels
Previous Daily High	0.9885
Previous Daily Low	0.9797
Previous Weekly High	0.9919
Previous Weekly Low	0.9714
Previous Monthly High	0.9976
Previous Monthly Low	0.9659
Daily Fibonacci 38.2%	0.9831
Daily Fibonacci 61.8%	0.9851
Daily Pivot Point S1	0.9775
Daily Pivot Point S2	0.9742
Daily Pivot Point S3	0.9687
Daily Pivot Point R1	0.9863
Daily Pivot Point R2	0.9918
Daily Pivot Point R3	0.9951

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.