- USD / CHF turned bearish during the European session.
- The dollar lost momentum due to a fall in Treasury bond yields.
The USD / CHF broke down in the European session, after having been trading in ranges. It just hit lows for the day at 0.9257, and is trading around 0.9260 / 65.
The dollar could not hold above 0.9300 and began to pull back, which was motivated by a general weakness of the dollar. After a positive start to the week, as a result of a certain aversion to risk, the greenback then lost pace, while the Treasury bonds recovered. The US 10-year benchmark rate fell to 1.66%, the lowest since March 18. This put downward pressure on the dollar index, which returned below 92.00.
The abrupt decision of the Turkish president Tayyip Erdogan to replace the governor of the central bank with a critic of high interest rates surprised investors and had an impact on world markets. After the initial impact, the price fluctuation for this reason has moderated. Traders will keep an eye out for the opening of other emerging market currencies and then statements from Fed officials.
From a technical point of view, USD / CHF has managed to stay well above last week’s lows near the 0.9215-10 region. In a short-term perspective, the dollar would be positioned for more rises to affirm above 0.9320, while in the opposite direction, an important support appears at 0.9240 / 45.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
