- USD / CHF saw some new selling on Monday and broke below a multi-day trading range.
- The Fed’s dovish expectations continued to weigh on the USD and put some pressure on the pair.
- The bullish market sentiment could undermine the safe haven CHF and help limit deeper losses.
The pair USD/CHF it weakened further below 0.9100 and fell to two-week lows during the middle of the European session. The pair was last seen trading near the lower end of its daily range, around the 0.9080-75 region.
After a brief consolidation during the first half of trading action, the pair encountered fresh offers on Monday and extended its recent pullback from near 0.9200. The USD / CHF pair has now confirmed a short-term bearish break below a multi-day trading range amid the prevailing US dollar sell bias.
The dollar remained depressed amid speculation that the Fed may have to further ease monetary policy to combat the economic damage caused by the imposition of new COVID-19 restrictions in several US states This, in turn , was seen as a key factor putting pressure on the USD / CHF pair, although market optimism could help limit losses.
Global risk sentiment remained well supported by the latest optimism about a possible early launch of vaccines for the highly contagious coronavirus disease. This was evident by a bullish movement in the equity markets, which tends to undermine the demand for the safe haven Swiss franc and should provide some support to the USD / CHF pair.
In another promising development, AstraZeneca announced Monday that its candidate vaccine, developed jointly with the University of Oxford, was up to 90% effective in preventing the COVID-19 virus if patients received an initial half dose, followed by one dose. complete. This warrants some caution before positioning ourselves for any further decline.
Market participants now await the release of the flash version of the US Manufacturing and Services PMIs for November. The data could influence the dynamics of USD prices during the early days of the American session. This, along with the broader market risk sentiment, should produce some significant trading opportunities around the USD / CHF pair.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
