The USD/CHF pair quickly recovered around 40 pips from the early European session dip to over four-month lows and refreshed daily tops, around mid-0.9300s in the last hour.
The pair managed to find some support ahead of the 0.9300 round-figure mark and for now, seems to have stalled its recent bearish trajectory amid a goodish pickup in the US dollar demand. Against the backdrop of the ever-increasing COVID-19 cases, concerns about worsening US-China relations benefitted the greenback's status as the global reserve currency. This, in turn, was seen as one of the key factors behind the USD/CHF pair's modest uptick witnessed over the past hour or so.
Diplomatic tensions between the world's two largest economies escalated further after the United States asked China to close its consulate in Houston in order to protect American intellectual property. The US State Department Spokesperson Ortagus said on Wednesday that the US will not tolerate any violation of its sovereignty. China’s foreign ministry strongly condemned the move and threatened retaliation, sparking fears that the latest dispute could halt the US-China trade deal.


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