USD/CHF extends sideways grind around 0.9900 in quiet day
- USD/CHF struggles to find direction after last week's slump.
- US Dollar Index clings to small daily gains on Monday.
- Wall Street's main indexes look to open sharply higher.
The USD/CHF lost 150 pips last week and registered its lowest weekly close in nearly six years at 0.8998. With the market action turning subdued at the start of the week, the pair is fluctuating in a very narrow range near 0.9000.
USD selloff takes a break
Over the weekend, Joe Biden has been declared the winner of the US presidential race after securing the majority of the votes in battleground states such as Pennsylvania, Nevada and Arizona. However, Donald Trump's campaign quickly reaffirmed their commitment to challenging the results in those states, citing concerns about irregularities in the voting process.
Nevertheless, the market mood remains upbeat on Monday and the S&P 500 futures are up 1.5%, suggesting Wall Street's main indexes are likely to open the day decisively higher.
If risk flows continue to dominate the financial markets in the second half of the day, the greenback could under renewed pressure and cause USD/CHF to extend its slide. However, investors may look reluctant to add to their long CHF positions on concerns over a possible Swiss National Bank (SNB) intervention. At the moment, the US Dollar Index (DXY), which fell 0.43% last week, is consolidating last week's losses near 92.30.
There won't be any significant macroeconomic data releases in the remainder of the day and the risk perception is likely to remain as the primary driver of the USD's valuation.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
