USD/CHF hits 1-1/2 week tops, around 0.9775 region amid notable USD demand

• USD/CHF gains traction for the fifth consecutive session on Friday.
• Sustained USD buying was seen as a key factor driving the pair higher.
• Friday’s key focus will remain on the closely watched US jobs report.

The USD/CHF pair edged higher through the early European session and climbed to over one-week tops, around the 0.9775 region in the last hour.

The pair prolonged this week's goodish positive move from the key 0.9500 psychological mark and continued gaining traction for the fifth consecutive session on Friday, all against the backdrop of sustained buying around the US dollar.

The greenback remained well supported by its status as the global reserve currency amid concerns over the economic fallout from the coronavirus pandemic and seemed rather unaffected by a fresh leg down in the US Treasury bond yields.

Meanwhile, a weaker tone around the equity markets, which tends to undermine the Swiss franc's perceived safe-haven status, also did little to dampen the bullish mood or hinder the ongoing positive momentum to the highest level since March 26.

It will now be interesting to see if bulls are able to maintain their dominant position or opt to take some profits off the table as the focus now shifts to Friday's important release of the closely watched US monthly jobs report for March.

Given Thursday's muted market reaction to an unprecedented surge in the US initial weekly jobless claims, the headline NFP print is unlikely to be a major game-changer and might do little to influence the pair's near-term trajectory.

Hence, developments surrounding the coronavirus saga might continue to influence the USD price dynamics, which should act as an exclusive driver of the pair's momentum on the last trading day of the week.

Technical levels to watch