- USD / CHF rose to its strongest level since April at 0.9334.
- Falling US Treasury yields and risk aversion weigh on USD / CHF.
- The US Dollar Index remains in positive territory above 93.00.
After the strong rebound of the previous week, the pair USD/CHF it rose during Asian trading hours and hit its strongest level in more than five months at 0.9334. However, the pair reversed its direction amid the market’s bad mood and was last seen shedding 0.4% on the day at 0.9285.
With an eye on Wall Street
Concerns about China’s Evergrande crisis crippling global economic growth force investors to seek refuge early in the week. Currently, S&P 500 futures are down 1.7%, suggesting that the major Wall Street indices will suffer heavy losses after Monday’s opening bell. In addition, the yield on the benchmark 10-year US Treasury is down by more than 3%, helping the CHF find demand.
On the other hand, the US Dollar Index remains in positive territory above 93.30, limiting the USD / CHF decline for the time being.
There will be no high-level data releases from the US for the remainder of the day and risk perception is likely to continue to dominate USD / CHF movements.
USD / CHF short-term outlook
Karen Jones, head of the FICC technical analysis research team at Commerzbank, believes that USD / CHF should fall below 0.9168 to ease immediate upward pressure.
Technical levels
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