- USD/CHF rejected at 0.9160 resistance area, retreats to levels sub-0.9100.
- The US dollar tests four-week lows at 0.9085.
- The deterioration of the market sentiment does not help the greenback.
The dollar was rejected again from the resistance area around 0.9160 and lost footing against the Swiss Franc during the Europea session on Monday. The pair has given away nearly 0.5% so far today to test four-week lows at 0.9085.
The positive market mood hurts dollar demand
The greenback depreciated across the board earlier on Monday, weighed by investors' optimism during the Asian and European sessions. The upbeat GDP figures in China plus the comments from Nancy Pelosi over the weekend, suggesting the possibility of a stimulus deal, and drugmaker Pfizer reporting that the coronavirus vaccine might be available before the year-end have boosted risk appetite, weighing on the US dollar.
In absence of relevant macroeconomic figures, the US dollar gave away last week’s moderate gains to reach session lows at 0.9090, only a handful of pips shy of early October lows at 0.9085.
Market optimism, however, vanished during the US session, with news reports cooling hopes of a fiscal stimulus deal, with, US Secretary of State, Mike Pompeo stirring global trade fears further after announcing sanctions to China and Hong Kong. Markets have reacted with risk aversion to the news. Equity indexes turned negative, with the US dollar regaining lost ground al;though the USD/CHF has not been able to return above 0.9100 at the time of writing.
Technical levels to watch
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