USD/CHF drops to over 1-week lows, farther below mid-0.9400s
|- USD/CHF remained under some selling pressure for the third consecutive session on Thursday.
- The bearish sentiment surrounding the greenback kept exerting some pressure on the major.
- The upbeat market mood, which undermines the safe-haven CHF, did little to lend any support.
- Thursday’s focus will remain on the closely-watched US jobs report, popularly known as NFP.
The USD/CHF pair weakened farther below mid-0.9400s and dropped to over one-week lows during the early European session on Thursday.
The pair extended this week's retracement slide from the 0.9530 region, or two-week tops set on Tuesday and remained depressed for the third consecutive session. The US dollar selling remained unabated through the first half of Thursday's trading action, instead was seen further fueled by some follow-through downfall in the US Treasury bond yields. This, in turn, was seen as one of the key factors exerting pressure on the USD/CHF pair.
Meanwhile, the ongoing downfall seemed rather unaffected by the prevalent upbeat market mood, which tends to undermine demand for the perceived safe-haven Swiss franc. The global risk sentiment remained well supported by Wednesday's positive economic data from the US and Europe. The sentiment got an additional boost following the news of positive results from the early-stage human trial for a COVID-19 vaccine – co-developed by Pfizer and Germany’s BioNTech.
Apart from the mentioned factors, the latest leg of a downfall witnessed over the past hour or so could further be attributed to some technical selling below mid-0.9400s. The downside, however, is likely to remain cushioned as investors might now refrain from placing fresh bearish bets, rather prefer to wait on the sidelines ahead of Thursday's release of the closely-watched US monthly jobs report later during the early North American session.
The headline NFP is expected to show that the US economy added 3 million jobs in June and the unemployment rate is anticipated to have edged lower to 12.3% from 13.3% previous. A surprisingly stronger-than-expected report might provide some respite to the USD bulls, albeit seems unlikely to be a major game-changer amid concerns about the ever-increasing number of coronavirus cases across the world.
Technical levels to watch
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