- USD/CHF trading lower for the fifth continuous day.
- The pair was near multi-year lows but managed to stage a bounce in the later trading.
- Increased tensions between the US and China helped the safe-haven CHF.
Multi-year lows were posted in the USD/CHF pair around 0.9035 during the early European session. The pair managed to crawl back a bit, later in the day.
The pair which came off from the 0.9200 area last week continued the slide to post five consecutive down days. The continued selling in the US dollar exerted much pressure on the USD/CHF pair.
The greenback is underperforming in recent months, thanks to the fiscal stimulus impasse and the slide in the Treasury Yields. The weak macro data on Monday further weakened the dollar.
The lowest level since January 2015 in the dollar against the safe-haven Swiss Franc is also a reflection of the cautious mood prevalent in the market as global risk sentiment turned south after renewed US-China trade bickering.
Washington on Monday put more facilities of Chinese technology giant Huawei Technologies under the ban, blocking the company’s ability to access commercially available chips.
The bullish sentiments were helped by the news of a potential vaccine against coronavirus and the pair staged a comeback of 20 pips from the daily lows.
USD/CHF was trading at 0.9055-60, a much better level compared to the early lows. Can this pair sustain the bounce or meet more selling now?
The data docket is very light today, and the market will focus on the FOMC meeting minutes due on Wednesday, possibly ignoring the release of Building Permits and Housing Starts later in the US session.
