- USD / CHF accelerated the decline in the European session.
- The DXY falls on a pullback in Treasury yields.
After passing the Asian session fluctuating in a very tight range around 0.9300, the USD / CHF broke down and had a marked decline reaching 0.9244, the lowest level in a week. It is moving around 0.9250, down 0.50% on the day.
Widespread dollar weakness
On Wednesday, strong demand seen during the auction of US 10-year Treasuries in the US. it caused a sharp drop in Treasury yields and hurt the dollar. The US dollar index continued to decline and reached the 91.50 area.
Earlier in the day Reuters reported that the USD / CHF one-month risk reversal indicator, the spread between buy and sell prices turned positive for the first time since the beginning of this data in March 2016. This development suggests that investors are beginning to price a bullish outlook in the short term.
In short, the European Central Bank announce its monetary policy decision. No changes are expected in the interest rate, or in the purchase program. The key could be through President Lagarde’s statements, which have the potential to influence the euro and the Swiss franc.
From the US labor market data will be released, with the report of applications for unemployment benefits and the report of job requests (JOLTS) for January.
Technical levels
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