USD/CHF moves back above 1.00 to its highest level since 19 November
The yen and swissie are both being tested now with markets looking to build up momentum towards a risk-on move at the moment. USD/JPY is still knocking at the door of a firm break above the 110.00 handle while USD/CHF looks to find a break back above the 1.0000 level.
For the latter, buyers are in total control after defending a test of the key daily moving averages just above 0.9900 last week. The big question on the daily chart would be can buyers maintain gains above the parity level to end the day.
If so, that would be a big boost towards making a run at resistance levels near 1.0040-60 next.
As it stands, European equities are surging higher and risk assets like oil are also rallying at the moment. If US traders confirm a risk-on move later today, expect the yen and swissie to suffer more significant losses in the session ahead.
That said, I remain a bit skeptical on a risk-on break here with trade talks still left in limbo. But markets have been known to get ahead of themselves in the past so there's no point arguing with something like that if it does come later today. Watch out for USD/JPY and the 110.00 handle. It could really take off once traders settle into a more bullish rhetoric on risk sentiment.
