USD/CHF drops below 0.9350 as US President Trump’s speech disappoints markets
|- USD/CHF extends the previous day’s losses.
- A lack of spending details in the US coronavirus action plan seems to weigh on risk-tone.
- Earlier updates concerning the virus have been worrisome as well.
USD/CHF drops more than 30 pips to 0.9335, down 0.53%, after US President Donald Trump’s plan to confront coronavirus (COVID-19) disappoint market players on early Thursday.
The US leader fails to offer any concrete detail of the plans to be taken to counter the virus that has taken the nation’s death toll near 1,000. The details suggest an increase in funding and liquidity infusion while banning the travels to and from Europe.
Read: Trump: We will defeat this virus, US will suspend all travel from Europe to US for next 30 days
The much-anticipated fiscal stimulus was initially expected to roll out heavy measures relating to the increase in spending and favor of the Small and Medium Business houses.
Earlier during the day, Washington confirmed 366 cases, taking the death toll to 29, while medical professionals suggested millions of cases to take place. Elsewhere, missile strikes in Iraq, as well as worsening situations in Italy, have also weighed on the market’s risk tone.
While portraying the same, the US 10-year treasury yields slip eight basis points (bps) to under-0.80% area whereas the US stock futures also nosedive and Japan’s NIKKEI mark 4.2% loss to 18,591 by the press time.
Investors will now pay close attention to the coronavirus updates, amid the present risk aversion wave, for near-term direction.
Technical Analysis
Although 0.9300 is likely immediate support, Tuesday’s low near 0.9240 is a comparatively stronger rest for the pair. On the upside, buyers will look for entry beyond 0.9410.
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