- USD / CHF witnessed strong selling for the third consecutive session on Thursday.
- Hopes for more fiscal stimulus from the United States weighed on the United States and continued to exert pressure.
- The optimism of the COVID-19 vaccine did little to provide support or stop the ongoing decline.
The pair USD/CHF It sank to fresh multi-year lows during the early North American session, and bears are now pointing to follow-up weakness below 0.8900.
The US dollar index continued its recent downtrend and fell to its lowest level in more than two years on Thursday amid signs of progress toward additional fiscal stimulus from the United States. This, in turn, was seen as one of the key factors that continued to put pressure on the USD / CHF pair for the third consecutive session on Thursday.
The dollar remained depressed and failed to gain any significant traction after the release of initial weekly Unemployment Claims, which fell to 712,000 during the week ending November 27. The post was well below the 775,000 anticipated, but was largely denied by an upward revision of the prior week’s reading to 787,000 from 778,000.
The USD / CHF pair fell to levels not seen since January 2015 and the downward trajectory did not appear to be affected by optimism about the launch of the COVID-19 vaccine. The UK on Wednesday approved a vaccine jointly developed by Pfizer and BioNTech, though it did little to undermine the safe-haven Swiss franc or provide support for the pair.
Thursday’s US economic agenda also highlights the ISM services PMI release. However, the data is unlikely to provide a respite for the USD bulls, although oversold conditions could help limit any further declines for the USD / CHF pair. That being said, some follow-up sales below 0.8900 should pave the way for additional weakness.