- USD / CHF moves into negative territory for the fourth consecutive session on Thursday.
- A softer tone around the USD was seen as a key factor putting pressure on the pair.
- Better-than-expected data on jobless claims in the United States did not provide a respite for the USD.
The pair USD/CHF it updated multi-year lows during the early North American session, and bears are now looking to extend the bearish trajectory further below 0.8800.
The pair was unable to capitalize on its intraday rally, instead finding fresh supply near the 0.8825 region and falling into negative territory for the fourth consecutive session on Thursday. The prevailing bearish sentiment around the US dollar was seen as one of the key factors limiting the initial recovery attempt.
Investors remain convinced of the likelihood of more US financial aid package. This, coupled with expectations that the Fed will keep interest rates lower for a longer period, continued to weigh on the ball. In fact, the DXY fell to its lowest level since April 2018 and was unable to get any respite from the upbeat initial jobless claims data.
According to the US Department of Labor (DOL), the number of Americans applying for unemployment-related benefits fell to 787,000 during the week ending December 26. This was well below the expected 833,000 and last week’s revised upward reading of 806,000 (803,000 previously reported), although it did little to impress USD bulls.
Meanwhile, signs of a moderate opening in US equity markets had little influence on safe-haven demand for the Swiss franc or provided a significant boost. However, the USD / CHF pair is still on track to post its lowest monthly close since April 2014 and end the year on a pessimistic note, registering a drop of around 9% in 2020.
Technical levels
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