USD/CHF jumps back to 0.97 handle ahead of ADP report

The USD/CHF pair regained traction on Wednesday and moved back to the 0.9700 handle, recovered tepid losses recorded over the previous two trading sessions. 

Diminishing demand for traditional safe-haven currencies, including the Swiss Franc, has been one of the key factors driving the pair higher on Wednesday. Even the prevalent cautious environment did little to lend support and stall the pair's up-move through early European trading session. 

Meanwhile, the market seems to have largely ignored a softer tone surrounding the US Dollar led by continued US political uncertainty and concerns over softening US inflation, which might hold back the Fed from raising interest rates further in 2017.

Next on tap would be the release of ADP report on the US private sector employment, which would influence investors’ expectations from Friday's official NFP data and provide some fresh impetus during early NA session.

Technical levels to watch

On a sustained move back beyond the 0.9700 handle, the pair is likely to dart towards the 0.9730 region (Friday's high) before eventually aiming to test June monthly highs resistance near 0.9765-70 region. Alternatively, failure to clear the immediate hurdle, leading to a subsequent drop below the 0.9640-35 region, would turn the pair vulnerable to head back towards the 0.9600 handle.