- USD / CHF struggles to organize a convincing recovery on Monday.
- The US dollar index is holding on to modest gains near 91.00.
- The cautious mood in the market is helping the CHF safe haven to remain strong.
The pair USD/CHF, which fell to its lowest level since early 2015 at 0.8884 on Friday, gained traction at the beginning of the week and climbed towards 0.8950. However, the pair struggled to push higher with the CHF attracting investors as a safe haven and erased its gains. At time of writing, USD / CHF was down 0.1% on the day at 0.8912.
Market sentiment turns sour over no-deal Brexit concerns
Renewed fears that the EU and UK will fail to reach a trade deal appear to be hurting market sentiment on Monday. Germany’s Euro Stoxx 50 and DAX 30 indices are down 0.6% and 0.42%, respectively, and S&P 500 futures are losing 0.35%.
Meanwhile, the dollar is also taking advantage of risk aversion flows and the US dollar index (DXY) is holding on to modest gains around 91, limiting the USD / CHF slide for the time being. Last week, the DXY lost more than 1% and closed below 91 for the first time since April 2018.
No major US macro data will be released for the remainder of the day and investors will closely follow the performance of the major Wall Street indices. On Tuesday, the Swiss labor market report will be released at 06:45 GMT.
Technical levels
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