USD/CHF drops below 0.9100 amid USD weakness and risk aversion
- USD/CHF continues with its downside momentum for the third straight session.
- Uptick in US 10-year Treasury yields fail to uplift the demand for the US dollar
- Swiss franc gains on its safe have appeal amid risk-off mood.
The depreciative move in the US dollar keeps USD/CHF edgy in the initial Asian trading hours. The pair moves in a narrow trading range in a less than 10-pips movement with a negative outlook.
At the time of writing, USD/CHF is trading at 0.9099, down 0.01% for the day.
The US dollar index trades at 92.27 with 0.17% losses. Investors dampen the greenback after the Fed’s dovish monetary policy stance.
The US 10-year benchmark yields remain unchanged with little traction after the US central bank concluded its two-day meeting of the FOMC by keeping interest rates in a target range near to zero as widely expected.
Meanwhile, as per the Reuters reports, the US bipartisan infrastructure bill of approximately $1 trillion received 60 votes to advance in US Senate toward formal debate and possible passage.
It is worth noting that S&P Futures were trading at 4,392 with 0.02% losses.
On the other hand, the Swiss franc rose largely on its safe-haven appeal as investors rushed towards the safer assets amid risk uncertainty.
The Swiss Investor Sentiment Index fell to 42.8 in July amid renewed coronavirus induced fears.
As for now, traders are waiting for the US Initial Jobless Claim data, Gross Domestic Product (GDP) to gauge the market sentiment.
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.
