- USD/CHF slides to fresh multi-year lows amid some renewed USD selling bias.
- The safe-haven CHF further benefitted from a selloff in the US equity markets.
- Extremely oversold conditions on the daily chart warrant some caution for bears.
The USD/CHF pair witnessed some selling during the early North American session and dropped to the 0.9110 region in the last hour – the lowest level since May 2015.
The pair failed to capitalize on its attempted intraday recovery move, instead met with some fresh supply near mid-0.9100s amid the emergence of some fresh selling around US dollar. The US Treasury bond yields recorded a steep decline on Thursday and capped the early modest USD rebound.
In fact, the yield on the benchmark 10-year US government bond yield nosedived to the lowest level since early March following the release of the advance US GDP report. The preliminary number showed that the US economy shrank at a record 32.9% annualized pace during the second quarter.
The USD was further pressured by the impasse over the next round of the US fiscal stimulus measures. With only two days left before the expiry of the existing enhanced unemployment provisions, Congressional Republicans and Democrats have been struggling to reach a deal.
Apart from this, a selloff in the US equity markets benefitted the Swiss franc's safe-haven status and further contributed to the USD/CHF pair's intraday fall of around 40 pips. US stocks added to the daily losses after the US President Donald Trump proposed to delay the 2020 election due to coronavirus.
The pair has now drifted into the negative territory for the eighth consecutive session, with bears now eyeing a sustained break below the 0.9100 round-figure mark. However, extremely oversold conditions on short-term charts warrant some caution before placing fresh bearish bets.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.