- The US dollar is back for the second day in a row, reaching levels below 0.9300.
- The Swiss franc makes up lost ground amid a weaker dollar.
- USD / CHF: Expected to remain capped below 0.9330 – Credit Suisse.
The US dollar is retreating against the Swiss franc for the second day in a row after hitting nearly six-month highs at 0.9365. The USD / CHF pair has returned below 0.9300, although a 0.6% advance is still forecast this week.
CHF bounces off a weaker dollar
The Swiss franc is making up for lost ground for the second day in a row, with the US dollar retreating across the board. The US Dollar Index, which measures the value of the dollar against its most traded currencies, is losing to 0.3% on the day, returning to levels around 94.00 after hitting one-year highs in the 94.50 area earlier. This week.
US Treasury yields that have fueled the recent rally in the dollar are declining on Friday, with the 10-year yield back below 1.5% for the first time since Monday. Beyond that, the parliamentary stalemate to lift America’s debt limit and prevent a government shutdown is adding negative pressure on the dollar.
The positive macroeconomic agenda, with the ISM manufacturing PMI showing that US manufacturing activity expanded beyond expectations in September and personal consumption data for August, registering an increase of 0.8%, versus consensus. of a reading of 0.6%, they have not offered support to the US dollar.
USD / CHF: Expected to remain capped in the 0.9330 area – Commerzbank
According to Karen Jones, Head of the FICC Technical Analysis Research Team at Commerzbank, USD / CHF could have reached a relevant resistance level, at 0.9330: “USD / CHF remains offered in the short term but will soon find the 2019 downtrend. -2020 at 0.9330 and recent high of 0.9333, where ideally it will fail again (…) “The market will have to head below the 55-day ma at 0.9174 to ease immediate upward pressure.”
Technical levels
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