• USD/CHF turned positive for the second straight day amid renewed USD buying interest.
  • The Russia-Ukraine war benefitted the greenback’s status as the global reserve currency.
  • Friday’s US macro releases might do little to influence or provide any impetus to the pair.

The USD/CHF pair held on to its modest intraday gains through the mid-European session and was last seen trading near the daily high, around the 0.9260 region.

Following the overnight pullback from the two-week high, the USD/CHF pair attracted fresh buying near the 0.9240-0.9235 region on Friday and was supported by reviving US dollar demand. The market sentiment remains jittery amid worries about the worsening situation in Ukraine. This, in turn, continued benefitting the greenback’s status as the global reserve currency and acted as a tailwind for the major.

In the latest development, Ukrainian media reported Russian forces have entered the Obolon district, which is approximately 10 km from Kyiv – the capital city. Adding to this, gunfire was heard in Kyiv’s historic city centre. There were also mentions of Russian air missiles being spotted in the north of Kyiv. This, along with calls to disconnect Russia from the so-called SWIFT global payment system, kept investors on the edge.

This was seen as a key factor that pushed the USD/CHF pair into the positive territory for the second successive day – also the third in the previous four. Despite the intraday positive move of nearly 40 pips, spot prices remain well below the overnight swing high, warranting some caution before placing aggressive bullish bets. Nevertheless, the incoming geopolitical headlines will continue to play a key role in driving the pair.

Friday’s economic docket highlights the release of the Fed’s preferred inflation gauge – the Core PCE Price Index – and Durable Goods Orders, due during the early North American session. The data, however, might do little to influence the USD price dynamics or provide any meaningful impetus to the USD/CHF pair. Hence, the market focus will remain glued to fresh developments surrounding the Russia-Ukraine saga.

Technical levels to watch

This article was originally published by Fxstreet.com.Read the original article here.

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