- The USD/CHF attracts sellers for the third consecutive day in the middle of a weakest USD.
- US fiscal concerns and Fed feature clippages drag the USD at a minimum of almost two weeks.
- The reactivation of the safe refuge demand benefits the CHF and contributes to the fall of the torque.
The USD/ChF pair continues to lose ground for the third consecutive day and falls to a minimum of two weeks, around the region of 0.8220-0.8215 during the Asian session on Wednesday. In addition, the fundamental background suggests that the lower resistance path for cash prices remains down.
The American dollar seller (USD) remains unchanged following the fiscal concerns of the US, which led to a surprising reduction of the sovereign credit rating of the US government last Friday. To this is added the growing acceptance in the market that the Federal Reserve (FED) will cut the interest rates even more this year in the midst of relief signals in inflationary pressure and a slow growth panorama, which drags the USD to a minimum of two weeks. In addition, the reactivation of the secure refuge demand is observed by supporting the Swiss Franco (CHF) and exerting additional pressure on the USD/CHF torque.
The recent optimism on the commercial truce between the US and China fades quickly after the US issued a guide warning companies that do not use the chips of the Ascend of Huawei. In response, China accused the United States of abusing export control measures and said the Trump administration is violating trade agreements in Geneva. In addition, the China Ministry of Commerce said Wednesday that US measures on advanced chips are typical of unilateral harassment and protectionism. ‘ This feeds concerns about the deterioration of commercial relations between the US and China and increases the demand for safe refuge assets.
Looking ahead, there are no relevant economic data that move the market scheduled for publication from the US on Wednesday, leaving the USD at the mercy of influential members of the FOMC. In addition, trade related developments will boost the feeling of broader risk and the demand for safe refuge, which should contribute even more to generate short -term trading opportunities around the USD/CHF torque. However, the aforementioned fundamental background supports the perspectives of an extension of the fall of the torque observed during the last week approximately.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. US dollar was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.39% | -0.29% | -0.52% | -0.19% | -0.45% | -0.43% | -0.69% | |
| EUR | 0.39% | 0.10% | -0.16% | 0.18% | -0.03% | -0.05% | -0.30% | |
| GBP | 0.29% | -0.10% | -0.23% | 0.10% | -0.12% | -0.13% | -0.41% | |
| JPY | 0.52% | 0.16% | 0.23% | 0.32% | 0.08% | 0.08% | -0.17% | |
| CAD | 0.19% | -0.18% | -0.10% | -0.32% | -0.26% | -0.23% | -0.52% | |
| Aud | 0.45% | 0.03% | 0.12% | -0.08% | 0.26% | 0.01% | -0.26% | |
| NZD | 0.43% | 0.05% | 0.13% | -0.08% | 0.23% | -0.01% | -0.28% | |
| CHF | 0.69% | 0.30% | 0.41% | 0.17% | 0.52% | 0.26% | 0.28% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
