USD / CHF falls to one-week lows below 0.9100

• USD / CHF remains under pressure during the first half of trading action on Thursday.
• Biden’s likely victory in the US election continues to put some pressure on the USD.
• The prevailing risk appetite sentiment could weigh on the safe haven CHF and help limit losses.

The pair USD/CHF lost ground during the first half of Thursday’s European session and has fallen below the 0.9100 level, hitting one-week lows. At the time of writing, the pair is trading around the 0.9080 level after having set a daily low at 0.9072.

Following the volatile movements in both directions of the previous day, the pair found new sales on Thursday, Pressured by the sustained sale of the US dollar. America’s presidential battle remains undecided, but Democratic candidate Joe Biden has taken the lead in key states. The likelihood of Biden moving closer to the White House has been considered one of the key factors keeping USD bulls on the defensive..

Apart from this, the strong current decline in US Treasury yields It has further affected the already weak sentiment around the USD and has put some pressure on the USD / CHF pair. However, the prevailing optimistic sentiment in the market, as reflected by a strong positive continuation move in US stock market futures, seems to affect the safe haven Swiss franc and help limit the decline, At least for the moment.

Investors also seem reluctant to position themselves aggressively, preferring to wait on the sidelines before the latest update of the Fed’s monetary policy, due out later this Thursday. Meanwhile, the release of the usual weekly US jobless claims data could generate some short-term trading opportunities at the start of the American session.