- Dollar weakness, due to fall in Treasury bond yields, pushes USD / CHF down.
- Tone of caution in Thursday’s preview of the ECB meeting and US inflation data.
USD / CHF is trading at the 0.8950 zone, at the day’s lows, which also corresponds to Tuesday’s low. A dip below could lead to a bearish extension, with the eye on the next support at 0.8930, where the May floor is.
Caution in global markets coupled with falling Treasury yields has played against USD / CHF. The dollar index is trading negative below 90.00, a two-day lows.
The key factor Wednesday appears to be falling Treasury yields. The 10-year rate loses 2.20% and is at 1.50%, the lowest intraday level in a month. This is in advance of the 10-year debt placement.
Thursday will be the key day of the week considering the current debate around inflation. The evolution of the consumer price index for May in the US will be known. On June 15 and 16 will be the meeting of the Federal Reserve and this data may be key.
Another important factor for USD / CHF will be Thursday’s meeting of the European Central Bank. No changes are expected but the tone of the statement and signals can have a wide impact, hitting the Swiss franc first and then the dollar.
Technical levels
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