- The US dollar regains momentum during the American session as market sentiment deteriorates.
- Swiss Franc falls across the board, EUR/CHF rises towards 0.9900.
- USD/CHF gets its best performance in weeks, gains 1.40%
The USD/CHF pair rallied strongly during the trading session on Tuesday, amid a broader strengthening of the US dollar and also a fall in the Swiss franc. The pair reached an European hourly high of 0.9398, the highest level since December 8, and then pulled back finding support at 0.9315. Approaching daily highs again as Wall Street extends losses.
The pair has broken above the 20-Day Simple Moving Average (now support at 0.9305) for the first time since early November. The recovery takes place after USD/CHF held above 0.9200. Above 0.9400, the next barrier is at 0.9430.
The dollar regains momentum, Wall Street turns red
After a positive opening, the Dow Jones fell 0.53% and the Nasdaq fell more than 1%. Deteriorating market sentiment boosts the dollar after a previous correction. The DXY reached a high of 104.85 and fell back to 104.15; at the time of writing these lines it is at 104.65, up 1.15% on the day.
At the same time, US yields are also moving higher, reversing an initial decline. The 10-year yield stands at 3.78% and the two-year return exceeds 4.40%.
The Swiss franc is one of the worst performing currencies, amid a rally in Swiss bonds. The 10-year Swiss bond yield falls 8.50% to 1.46%, moving away from the multi-year high it hit last week at 1.62%.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
