- Dollar bounce meets resistance just above 0.9900.
- Dollar trims losses after a two-day sell-off.
- USD/CHF: Below 0.9876, short-term risk turns negative — Credit Suisse.
The US dollar tries to trim losses on Thursday after the strong reversal recorded in the previous two days. The pair USD/CHF recovered from three-week lows at 0.9840, and has stalled below 0.9900 after hitting session highs at 0.9925.
Dollar Rebounds Amid Encouraging US Data
Data released by the Commerce Department revealed an unexpected rebound in the US economy. US Gross Domestic Product grew at an annual rate of 2.6% in the third quarter, beating expectations for 2.4% growth and reversing two consecutive contractions in previous quarters.
On the negative side, however, domestic demand has shown its weakest behavior in two years, confirming the negative impact of the most pronounced monetary tightening cycle in the last 40 years.
US Stock Markets jumped into the green after the data, although at the time of writing they are mixed, with the Dow Jones up 1.2%, the S&P practically sideways and the Nasdaq down 0.8%.
US Treasury yields have continued their pullback, with the 10-year Treasury yield trading at 3.9%, from levels near 4.3% earlier this week.
USD/CHF: Break of 0.9876 shifts short-term risk to the downside — Credit Suisse
Currency analysts at Credit Suisse warn of a bearish move beyond 0.9876, which could take the pair to the 0.9775 area: “USD/CHF has managed to break below 0.9876. This signals that a reversal is likely. further short term weakness.The short term MACD also reinforces this bearish signal so we expect a drop to 0.9838/30 initially and then probably a test of the 55 DMA at 0.9775.”
Technical levels to watch
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
