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USD / CHF falls to fresh multi-week lows near 0.9000

  • USD / CHF is falling sharply after closing in positive territory on Monday.
  • The US Dollar Index falls to its lowest level since April 2018 below 91.50.
  • The major Wall Street indices posted impressive gains on Tuesday.

The pair USD/CHF It was under heavy downward pressure during US business hours and fell to its lowest level in three weeks at 0.8999. At time of writing, the pair is trading at 0.9004, shedding 0.95% on the day.

USD selloff intensifies

The general weakness of the USD appears to be causing the USD / CHF to lower on Tuesday. The US Dollar Index (DXY) closed modestly higher on the first day of the week and remained relatively quiet around 91.80 for most of the day. However, with the S&P 500 and Nasdaq Composite beginning the first day of the month at new all-time highs, the DXY turned south and fell to its lowest level since April 2018 at 91.26.

Hours earlier, US data showed that business activity in the manufacturing sector continued to expand at a solid pace in November. The IHS Markit Manufacturing PMI and the ISM Manufacturing PMI came in at 56.7 and 57.5, respectively.

Meanwhile, FOMC Chairman Jerome Powell repeated Tuesday that the Federal Reserve remains committed to using all its tools to support the economic recovery. Powell further noted that more fiscal support will be needed. However, these comments had little or no impact on market sentiment or the performance of the dollar against its rivals.

On Wednesday, the Swiss Federal Statistical Office will release data from the Consumer Price Index (CPI).

Technical levels

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