USD/CHF extends slide to 0.9100 amid broad-based USD weakness
- USD/CHF is falling for second straight day on Thursday.
- Markets turn risk-averse with major European equity indexes trading in red.
- US Dollar Index slumps to 93.00 area ahead of weekly Jobless Claims data.
After rising above 0.9200 for the first time in more than a week on Wednesday, the USD/CHF pair turned south and snapped its four-day losing streak. With the risk-averse market environment helping the CHF preserve its strength as a safe-haven, the pair extended its slide and was last seen losing 0.2% on the day at 0.9102.
USD on the back foot ahead of American session
Despite heightened optimism for an effective coronavirus treatment, investors seem to have turned cautious ahead of Friday's key data releases from the euro area. At the moment, major European equity indexes are down between 0.15% and 1.1%. Investors expect the Eurostat to announce that the euro area economy contracted by 15% on a yearly basis in the second quarter.
On the other hand, the greenback is struggling to stage a rebound on Thursday, allowing the bearish pressure on USD/CHF to remain intact. Ahead of the US Department of Labor's weekly Initial Jobless Claims data, the US Dollar Index is down 0.4% on a daily basis at 93.05.
Meanwhile, S&P 500 futures are trading in the negative territory. Although it looks unlikely at this point, the USD could capitalize on a heavy selloff in US stock markets and provide a boost to USD/CHF.
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.
