- USD / CHF is witnessing some continuation selling for the second day in a row on Tuesday.
- Uncertainty about US fiscal stimulus measures weighs on the USD and puts pressure on the pair.
- Risk appetite sentiment does little to weigh on the safe-haven CHF or to support the pair.
The USD’s intraday selling bias has accelerated during the European session on Tuesday and has dragged the USD / CHF pair to lows of more than a month, around the 0.9070 region in the last hour.
The pair has not been able to capitalize on its initial rise and found new sales near the 0.9110 area, moving lower for the second day in a row on Tuesday. The fall has moved the USD / CHF pair away from the 0.9165 resistance zone, in one-week highs touched the previous day, and is due to the emergence of some new sales around the US dollar.
The Speaker of the United States House of Representatives, Nancy Pelosi, and the Secretary of the Treasury, Steve Mnuchin, have been able to narrow their differences in the next round of US fiscal stimulus measures. Investors, however, do not appear to be convinced of the passage of legislation on a coronavirus aid package in the Republican-controlled Senate.
Uncertainty over additional US fiscal stimulus measures has kept USD bulls on the defensive during the first half of trading action on Tuesday. Even a strong recovery in US Treasury yields has failed to revive demand for USD. A general weakness of the USD has been considered one of the key factors putting pressure on the USD / CHF pair.
Meanwhile, a solid rally in US equity futures, which tend to weigh on demand for the safe-haven Swiss franc, has also done little to offer support or ease the intraday downward pressure around the pair. USD / CHF. With the latest move down, the pair appears to have found acceptance below the 0.9100 level and remains vulnerable to further declines.
Market participants are now waiting for the US economic calendar, which features the second-tier releases of building permits and home starts. The data, along with developments around the US stimulus package, will influence USD price dynamics and could lead to some significant trading opportunities around USD / CHF.
Credits: Forex Street