USD / CHF flirts with multi-year lows and seeks to extend slide below 0.8800

Get real time updates directly on you device, subscribe now.

  • The prevailing bearish USD sentiment triggers some new selling in USD / CHF on Monday.
  • The bullish market sentiment does not influence the safe-haven CHF much or support the pair.

The pair USD / CHF has retreated near multi-year lows, with the bears still waiting for a sustained break below the round level of 0.8800 during the European session on Monday.

The pair has encountered new selling on the first trading day of 2021 and has now erased a significant part of the recovery gains from the previous day. The fall is due exclusively to the sustained sale of the US dollar And it hasn’t managed to get any respite from the sentiment of risk appetite, which tends to weigh on the safe-haven Swiss franc.

The probability of a additional package of US financial aid, along with speculation that the Fed will keep interest rates lower for a longer period, continue to weigh heavily on the dollar. Even a good recovery in US Treasury yields has done little to alleviate strong bearish sentiment around the USD.

Meanwhile, the mass distribution of vaccines has helped offset concerns about the newer strain of coronavirus spreading more rapidly. Aside from this, rising expectations for a strong global economic recovery in 2021 have continued to boost investor sentiment. Market optimism, however, has failed to support the USD / CHF pair..

Market participants are now awaiting the release of the final US Manufacturing PMI figure for further momentum. Investors could follow the signs of developments around the coronavirus saga, which, along with broader market risk sentiment and USD price dynamics, could lead to some short-term trading opportunities around the USD. / CHF.

USD / CHF technical levels


Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.