- The USD / CHF remains in a range, in the area of the lows of the year.
- The US dollar index falls modestly on Tuesday, trading near 90.50.
- The Swiss government expects the economy to contract 1% in the last quarter of 2020.
USD / CHF fell to its lowest level in almost six years at 0.8849 on Monday and appears to be struggling to make a meaningful recovery amid the general weakness of the dollar. At time of writing, the pair is trading around 0.8860 / 65, unchanged from yesterday’s close. The price continues to press on the key support zone of 0.8850.
The dollar remains the main factor
At the beginning of the week, the US dollar index (DXY) fell to its worst level since April 2018 at 90.42, against a background of optimism in stocks. Renewed hopes for a trade deal between the EU and the UK and the launch of mass vaccinations against the coronavirus have been important supports.
At Monday’s close, Wall Street lost momentum but this did not necessarily boost the dollar. USD / CHF remained below 0.8890. On Tuesday, stocks rose again, modestly and the main indices are below their recent highs.
What happens on Wall Street will continue to be important for USD / CHF, which can also be affected by expectations about the FOMC meeting which starts on Tuesday. Regarding data, the Empire manufacturing index of the New York region, the import price index, the industrial production data for November will be published.
In Switzerland, the Swiss Secretary of State for Economic Affairs (SECO) announced on Tuesday that it expects the economy to contract 1% in the last quarter of 2020 and remain stable in the first quarter of 2021. “We expect growth is positive in the second quarter and accelerates throughout the year as vaccines become available, the weather becomes warmer and countries ease their restrictions, ”SECO economist Ronald Indergand told Reuters.
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.
