USD/CHF slides to fresh multi-week lows near 0.9940 level
|The greenback remained heavily offered across the board, with the USD/CHF pair extending the rejection move from parity mark to reverse all of its gains recorded in the previous two trading session.
Spot remained under some selling pressure through European trading session, and early NA session, and was seen flirting with Friday’s over one-month lows near 0.9940 level. Persistent US Dollar weakness has been a key theme in the FX markets as investors now seemed convinced that the Fed is unlikely to opt for a faster rate-tightening cycle, despite of Monday's hawkish rhetoric from coupled of FOMC members - Evans and Harker.
Moreover, market also seems to have largely ignored the Swiss State Secretariat for Economic Affairs (SECO) downgrade of the Swiss economic growth estimate for 2017, with strong bearish sentiment surrounding the greenback being an exclusive driver of the pair's downslide on Tuesday.
On economic data front, a lower-than-expected US current account deficit for the fourth quarter of 2016 did little to provide any immediate respite for the US Dollar bulls.
Traders now turn their focus to speeches from Kansas City Fed's Esther George and Cleveland Fed's Loretta Mester for some fresh impetus.
Technical levels to watch
The ongoing bearish momentum seems strong enough to drag the pair below 0.9935-30 support area (Feb. 8-9 lows) towards the very important 200-day SMA support near 0.9915-10 region. On the upside, recovery above 0.9960 level now seems to confront resistance near 0.9985 region, above which the pair is likely to surpass parity mark and head towards testing 1.0020-25 resistance area.
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