USD/CHF hits weekly lows under 0.9150, approaches key long-term support
|- Spain and German inflation declined YoY, but core prices still stubbornly high.
- US Dollar under pressure on risk appetite, Treasuries drift sideways.
- Further weakness in the Dollar could send USD/CHF to test the 0.9050 area.
The USD/CHF is losing over 50 pips on Thursday following Spain and Germany's preliminary Consumer Price Index (CPI) numbers and US Jobless Claims. The pair bottomed at 0.9124, the lowest level in a week.
After the beginning of the American session, USD/CHF staged a recovery to 0.9145 but it is back at 0.9130, showing that the bearish pressure persists.
Economic data on Thursday showed mixed numbers regarding inflation in the Eurozone. Spain's CPI figures came in below expectation, while the German annual CPI declined to 7.4% YoY, above the 7.5% of market consensus.
European markets are rising, with main indexes up by more than 2%. Wall Street is also rising, but off recent highs. The improvement in market sentiment weighs on the US Dollar. The DXY is falling 0.48%, approaching 102.00.
Crucial level back in the radar
The pair is headed toward the lowest daily close in two weeks and again looks at the long-term critical support area of 0.9050.
If Dollar's weakness persists, USD/CHF could drop to test the critical area. A break below, would expose 0.9000, and could open the door to significant losses ahead. At the same time, levels near 0.9050 have triggered sharp rebounds in 2023, and also during the fourth quarter of 2021.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.