- The US dollar is down across the board, losses limited by risk aversion.
- The USD / CHF maintains a bearish bias, remains limited by the 0.9150 zone.
He USD/CHF it fell further back from the five-day high it hit on Wednesday at 0.9162 and bottomed at 0.9112. At time of writing, it is trading at 0.9125, still maintaining a bearish tone.
A weaker US dollar pushed the pair lower. The DXY fell to 93.20, cutting Tuesday’s gains. In the last few minutes he regained some strength amid risk aversion.
Stock prices on Wall Street took a decisive turn lower following comments from US Treasury Secretary Mnuchin on the stimulus talks. Previously, the dollar and markets were moving sideways without a clear trend.
Turning to US data, the Producer Price Index (PPI) rose 0.4% in September, beating market expectations for a 0.2% increase. The weekly unemployment claims report will be released on Thursday. Market participants continue to focus on stimulus talks, Brexit negotiations, and US politics.
From a technical perspective, the USD / CHF improvement seen on Tuesday was short-lived. The dollar needs to rise and stay above 0.9160 (horizontal resistance and downtrend line) to clear the way for a more significant recovery. The bearish bias still prevails. A drop below 0.9085 (October low) would likely lead to a test of 0.9050.
Credits: Forex Street
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