USD/CHF breaks the 1.0050 barrier and hits 1-month lows

Swiss Franc extends gains across the board even after US Dollar reversal.
USD/CHF having the worst performance in months heads for the lowest close since mid-April.

Matías Salord FXStreet

The USD/CHF was falling modestly on Thursday amid increasing demand for safe-haven assets. Recently it accelerated to the downside on the back of a sharp decline of the US Dollar across the board. The DXY dropped from multi-week highs back to the 98.00 area erasing important daily gains.

The greenback lost strength and reversed sharply following the release of weaker-than-expected US data and amid concerns about the US-China trade war. The Swiss Franc is being supported by the ongoing Brexit drama, the weak EZ data and also the trade war worries.

Against the Euro, the Swiss franc reached today the highest level in a month and moved closer to the 2019 and 2018 lows. While versus the US dollar is having the biggest daily gain in months.

The USD/CHF broke below 1.0065 first and then the 1.0050 zone that capped the decline last week. As of writing, trades at the lowest since April 16 at 1.0039, down almost 60 pips for the day. Short-term technical indicators favor further losses.

“On the back of resurfacing US-China trade tensions, CHF has been slow to appreciate - with USDCHF declining 1% off the 1.0230-40 resistance level. When compared to a 2.5% drop in USDJPY, this suggests that there is some upward stickiness in USDCHF. This could be due to perceived softness in Euro area sentiment. Nonetheless, we like the CHF from a haven perspective”, said Jeremy Stretch and Bipan Rai analysts at CIBC.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.