USD/CHF rebound eyes 0.9350 as Ukraine crisis favor USD bulls ahead of Powell

• USD/CHF prints the first daily gains in four, bounces off one-week low.
• News from Ukraine, China joins hawkish Fedspeak to defend USD bulls after weekly losses.
• Fed’s Powell, Biden’s call with European/British leaders will direct intraday moves.

USD/CHF picks up bids to refresh intraday high around 0.9340 as buyers cheer the greenback’s recovery heading into Monday’s European session.

The Swiss currency (CHF) pair snaps three-day rebound as escalating geopolitical fears from Ukraine join risk-negative headlines from China and Saudi Arabia to underpin the US dollar’s safe-haven demand. Also favoring the USD bulls are the recently hawkish comments from the Fed policymakers.

On Friday, Federal Reserve Bank of Minneapolis President Neel Kashkari, Richmond Fed President and FOMC member Thomas Barkin, as well as Fed Board of Governors member Christopher Waller, tried to shrug off the pessimism surrounding inflation and Fed’s next moves. The policymakers justified the latest rate hike considering the Ukraine crisis and backed the action, which in turn rejects USD bears fearing a dovish hike in the future.

Elsewhere, Ukraine’s rejection of Russia’s demand to surrender Mariupol hints at intensifying war conditions. The same push US President Joe Biden to have a call with the leaders of France, Germany, Italy and the UK.

It should be noted that China’s record high covid infections and a suspension of trading in Hong Kong by the troubled real estate firmer Evergrande also weigh on the market sentiment, which in turn favor the USD/CHF of late.

Amid these plays, the S&P 500 Futures drop half a percent by the press time while an off in Japan restricts US Treasury moves in Asia.

Looking forward, Fed Chair Jerome Powell is up for a speech and will be observed considering the negative impacts of his last words on the USD. Should the policymaker reiterate hopes of easing inflation fears, the USD bears return to the table. Even so, the risk-off mood may restrict USD/CHF downside.

Technical analysis

A daily closing below 0.9345 resistance confluence including January’s top and 10-DMA keeps USD/CHF bears hopeful to visit the 0.9300 round figure.