USD/CHF posts small daily losses below 0.9200
|- USD/CHF is falling for the eighth straight day on Tuesday.
- DXY recovery remains shallow amid falling US T-bond yields.
- Focus shifts to Consumer Confidence data from the US.
The USD/CHF pair closed the seventh straight day in the negative territory on Monday and continued to push lower on Tuesday. As of writing, the pair was down 0.16% on a daily basis at 0.9182.
USD recovery remains incosistent
The broad-based USD weakness combined with the risk-averse environment continues to weigh on USD/CHF. Although the US Dollar Index (DXY) seems to have found support following Monday's sharp drop, it struggles to make a decisive rebound amid falling Treasury bond yields. At the moment, the DXY is up 0.06% on the day at 93.71 and the 10-year T-bond yield is losing more than 1%. Later in the day, the US Conference Board will publish its monthly Consumer Confidence Index data.
On the other hand, investors stay cautious with new coronavirus hotspots emerging in Europe and help the CHF preserve its strength. At the moment, Germany's DAX 30 is down 0.6% on the day and the Euro Stoxx 50 is losing 0.35%. Meanwhile, S&P 500 futures are falling 0.4% to suggest that Wall Street is likely to open the day in the negative territory.
Later in the week, investors will be paying close attention to the FOMC's monetary policy announcements. Previewing this event, “a commitment to increase QE if balance sheet shrinkage was to persist given the poor take-up of lending programs could also be considered," said MUFG economists. "Some of these ideas may be touched on in the Q&A but overall we would expect a strong message of the need for continued stimulus.”
Technical levels to watch for
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.