USD/CHF slides further below 0.9000 mark, lowest level since February 24
|- USD/CHF continued losing ground for the fourth consecutive session amid sustained USD selling.
- Dovish Fed expectations continued acting as a headwind for the greenback and exerted pressure.
- The risk-on environment did little to weigh on the safe-haven CHF or lend any support to the pair.
The USD/CHF pair weakened further below the key 0.9000 psychological mark and dropped to the lowest level since February 24 during the mid-European session.
The pair prolonged its recent bearish trajectory and witnessed some follow-through selling on the first day of a new trading week. This marked the fourth consecutive day of a negative move and was exclusively sponsored by the prevalent bearish sentiment surrounding the US dollar.
The USD struggled to capitalize/preserve its modest intraday gains, instead met with some fresh supply and dropped to near two-and-half-month lows amid dovish Fed expectations. Friday's dismal US monthly jobs report reaffirmed that the Fed will keep interest rates low for a longer period.
The headline NFP showed that the US economy added only 266K jobs in April, far lower than consensus estimates pointing to a reading of nearly one million. Adding to this, the previous month's reading was revised down and the unemployment rate edged higher to 6.1% from 6.0% in March.
Meanwhile, the underlying bullish tone in the financial markets, which tends to weigh on the safe-haven Swiss franc, also did little to lend any support to the USD/CHF pair. That said, slightly oversold conditions on short-term charts might help limit the downside, at least for now.
There isn't any major market-moving economic data due for release from the US on Monday. Hence, the USD price dynamics will continue to play a key role in influencing the USD/CHF pair. Apart from this, the broader market risk sentiment will also be looked upon for some trading opportunities.
Technical levels to watch
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.