- USD / CHF is experiencing a modest rebound on Thursday.
- The US Dollar DXY Index recovers above 92.50 ahead of US data.
- USD / CHF appears to break a five-day losing streak.
After closing the previous five days in negative territory, USD / CHF is experiencing a rebound to the upside, supported by overall USD strength on Thursday. At time of writing, the pair is up 0.05% on the day at 0.9120.
Risk aversion supports the USD on Thursday
The US dollar DXY index remained on the defensive for the first half of the week as optimism around the coronavirus made it difficult for the dollar to find demand as a safe haven. However, with the major European stock indices turning down on Thursday, the DXY index has capitalized risk aversion money flows, gaining 0.25% on the day at 92.55.
Meanwhile, S&P 500 futures down 0.2% on the day, suggesting that market sentiment is likely to remain sour in the second half of the day.
Later in the session, initial weekly jobless claims from the US Department of Labor, which are expected to decline to 707,000 in the week ending Nov. 14, could generate further momentum in the pair. Additionally, the Federal Reserve Bank of Philadelphia will release its November manufacturing index along with existing home sales from the National Association of Realtors for October.
However, market participants are likely to continue to focus on risk perception, so the USD / CHF pair could break its losing streak if the USD remains strong due to a drop in the major Wall Street indices.
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