- USD / CHF remains under pressure during the first half of trading action on Friday.
- A pullback in US bond yields and pessimistic expectations from the Fed continue to weigh on the dollar.
- Risk appetite weighs on the safe-haven CHF and helps limit the pair’s slide.
The pair USD/CHF has managed to recover from an initial drop to fresh three-month lows near the 0.8950 region. At the time of writing, the pair is trading around the 0.8970 level, slightly negative on the day.
The pair has extended the heavy losses of the previous day and has been under pressure for the second day in a row on the last trading day of the week. This marks the third day of negative movement of the previous four, also the fifth in the previous seven, and is due to the prevailing selling bias around the US dollar.
Despite the optimistic minutes from the FOMC on Wednesday, expectations that the Fed will maintain its accommodative policy stance for a longer period they have continued to act as a headwind for the dollar. This, coupled with a softer tone around US Treasury yields, has kept USD bulls on the defensive near multi-month lows.
The negative factor, to some extent, has been seen offset by a positive risk tone in global stock markets. This, in turn, has weighed on demand for the safe-haven Swiss franc and helped the USD / CHF pair to find some support near 0.8950, warranting caution before positioning itself for a further decline.
Market participants are now awaiting the release of preliminary US PMI figures for May, to be released at the start of the American session today. This, along with US bond yields, will influence USD price dynamics. Investors will follow the signs of broader market risk sentiment for some short-term opportunities.
USD / CHF technical levels
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