USD/CHF retreats from multi-month highs, trades below 0.9300
|- USD/CHF rose to its strongest level since April at 0.9334.
- Falling US T-bond yields and risk aversion weighs on USD/CHF.
- US Dollar Index stays in the positive territory above 93.00.
Following the previous week's sharp upsurge, the USD/CHF pair edged higher during the Asian trading hours and touched its strongest level in more than five months at 0.9334. However, the pair reversed its direction amid the souring market mood and was last seen losing 0.4% on the day at 0.9285.
Eyes on Wall Street
Concerns over the Evergrande crisis in China crippling the global economic growth force investors to seek refuge at the start of the week. Currently, the S&P 500 Futures are down 1.7%, suggesting that Wall Street's main indexes will suffer heavy losses after the opening bell on Monday. Additionally, the benchmark 10-year US T-bond yield is down more than 3%, helping CHF find demand.
On the other hand, the US Dollar Index stays in the positive territory above 93.30, limiting USD/CHF's downside for the time being.
There won't be any high-tier data releases from the US in the remainder of the day and the risk perception is likely to continue to dominate USD/CHF's movements.
USD/CHF near-term outlook
Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, thinks that USD/CHF needs to drop below 0.9168 to alleviate the immediate upside pressure.
USD/CHF is in five-month highs, 0.9337 next target on the upside – Commerzbank.
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.