- USD / CHF struggles to find direction after last week’s slide.
- The US Dollar DXY Index is holding on to small daily gains on Monday.
- The major Wall Street indices appear to be opening sharply higher.
The USD/CHF It lost 150 pips last week and posted its lowest weekly close in nearly six years at 0.8998. With market action turning moderate early in the week, the pair is fluctuating within a very narrow range near 0.9000.
The USD selloff takes a break
During the weekend, Joe Biden was declared the winner of the United States presidential race after getting the most votes in battle states like Pennsylvania, Nevada and Arizona. However, the campaign Donald Trump quickly reaffirmed his commitment to challenge the results in those states, citing concerns about irregularities in the voting process.
However, market sentiment remains bullish on monday and S&P 500 futures are up 1.5%, suggesting that the major Wall Street indices are likely to open the day decisively higher.
If risk appetite money flows continue to dominate financial markets in the second half of the day, the dollar could come under new pressure and cause the USD / CHF to extend its decline. However, investors may appear reluctant to increase their bullish positions in CHF by concerns about possible intervention by the Swiss National Bank (SNB). At the moment, the DXY US Dollar Index, which fell 0.43% last week, is consolidating last week’s losses near 92.30.
No major macroeconomic data will be released for the remainder of the day and risk perception is likely to remain the main driver of USD price action.
Credits: Forex Street
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