USD/CHF consolidates below 0.9035 on softer US dollar
- USD/CHF holds lower ground in the early European session.
- US dollar holds onto multi-month lows amid steady US Treasury yields.
- Risk-aversion among investors lifts demand for the safe haven franc.
The depreciating move of the US dollar keeps USD/CHF grounded in the early European session. The pair opened higher but retreated quickly to the session's lows at 0.9016, where it wavers now.
The US dollar index (DXY), which tracks the performance of the greenback against its rivals, remains depressed near multi-month lows at 90.10. The greenback followed the US Treasury yields, which trade with a modest gain to 1.64%.
The sluggish movement in the US dollar could be traced back to the continuous reassurance from Fed officials on the continuation of current monetary policy to spur economic growth. The mixed US economic data taper expectations of any reversal of the accommodative monetary policy any sooner.
The market turns its back to the US dollar, as Fed official’s comments may signify no immediate interest rate hike is on the cards.
Meanwhile, investors look for other safer instruments amid rising coronavirus cases in Asia-Pacific. The Swiss franc, known for its ultra safe haven appeal, attracts fund’s flow rush. This keeps the pair grounded near the lower levels.
Investors turn their attention to the release of the US Building Permits for April and Housing Start data to find some fresh trading opportunities.
As for now, the dynamics around US Treasury yields continue to play around with the pair’s performance.
USD/CHF Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
