USD/CHF capped below 0.9130, is testing support at 0.9010 area
- USD/CHF heads south for the fifth day in a row to test support at 0.9090/00 area.
- The US dollar depreciates across the board on a moderately risk-on market.
The US dollar remains on the back foot against the Swiss franc, trading lower for the fifth consecutive day amid a broad-based USD weakness. With upside attempts capped below 0.9125/30, the pair has turned lower again to retest support area at 0.9090/00
The greenback has depreciated across the board on Wednesday amid a moderately positive risk sentiment as the latest news about the promising results of Pfizer’s vaccine has eased concerns about the record COVID-10 infections worldwide.
Drugmaker Pfizer has lifted market mood, announcing that, according to the latest tests, its coronavirus vaccine is 95% effective and 94% on adults beyond 65 years. The market celebrated the news with moderate advances in the European equity markets which has weighed on the safe-haven greenback.
US stocks have dipped into negative territory after a slightly positive opening. The US Dollar Index, though, remains negative, on course to confirm a five-day losing streak, and approaching two-month lows at 92.10.
Regarding macroeconomic data, the better than expected US housing starts, which rose to 1.53 million in October, beating market expectations of a 1.46 million reading, have had a minimal impact on the pair.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
