USD/CHF placed comfortably above 0.97 handle at multi-day tops

The USD/CHF pair extended its recovery move from 7-month lows touched earlier this week and was now seen building on to the momentum further beyond the 0.9700 handle. 

Persistent US Dollar buying interest, primarily led by a slump in the British Pound in wake of the UK election shock, has been one of the key factors driving the pair higher for the third consecutive session. 

   •  UK: Elections nightmare for May – BBH

Meanwhile, investors also seemed relieve after former FBI Director James Comey’s public testimony to the Senate Committee, which offered little surprise to spark fresh political turmoil in the US. And hence, a fresh wave of global risk-on trade, as depicted by strong gains across European equity markets, further dented the Swiss Franc's safe-haven appeal and collaborated to the pair's strong up-move on Friday. 

However, a subdued action surrounding the US treasury bond yields, as investors shift their focus to next week's FOMC meeting, has failed to provide any fresh bullish impetus, albeit did little to stall the pair's up-surge to 7-day tops, around 0.9720-30 band.

   •  US: Markets likely to shift their focus to the FOMC meeting - Rabobank

Amid absent fundamental drivers, in terms of any major market moving economic releases, broader market sentiment surrounding the greenback would remain an exclusive driver of the pair's movement through the last trading day of the week.

   •  USD/CHF points to near term recovery – Commerzbank

Technical levels to watch

On a sustained move beyond 0.9725-30 region, the pair seems to dart towards 0.9770 resistance en-route the 0.9800 handle. On the downside, retracement back below the 0.9700 handle now seems to find fresh buying interest near 0.9680-75 region ahead of mid-0.9600s.