- Stocks on Wall Street are positive again.
- The dollar index falls to weekly lows during the American session.
- USD/CHF is headed for the lowest daily close in two months.
The USD/CHF fell to 0.9541 in the American session, reaching a new daily low. Earlier, the pair reached a high of 0.9620 before turning lower amid a weaker US dollar.
The greenback was unable to sustain gains as Wall Street returned to positive ground. Improved market sentiment weighed on the dollar. The dollar index is down 0.37% and is trading at 103.75, the lowest level in a week. The 10-year US Treasury bond yield stands at 3.19% and the 30-year bond yield stands at 3.31%.
The Swiss franc remains strong since the Swiss National Bank’s rate hike 11 days ago. Sight deposits at the SNB fell last week by the most in more than a decade, suggesting an end to forex market interventions to curb the franc’s strength.
US economic data beat expectations on Monday. Durable goods orders increased 0.7% in May. Above the 0.1% expected. Pending home sales unexpectedly rose 0.7%. The figures did not help the dollar. The key data of the week will be Thursday’s underlying PCE. In Portugal, the annual forum of the European Central Bank begins on Monday; on Wednesday, a panel discussion will include Lagarde (ECB), Powell (Fed) and Bailey (BoE).
bearish bias
USD/CHF continues to move with a bearish bias. Failure to hold above 0.9600 confirms momentum. At the time of writing, the pair is testing levels below 0.9550. If it consolidates clearly below, further losses seem likely. The next target could be the 100 day simple moving average at 0.9505.
A recovery above 0.9620 should face resistance at 0.9680, followed by 0.9715 (20-day SMA).
Technical levels
Source: Fx Street
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