USD/CHF hits one-month lows under 0.9650 as franc remains strong
- Swiss franc remains among the top performers in the currency market.
- ECB open doors to positive interest rates by end of Q3.
- USD/CHF keeps looking for support, bearish outlook.
After a short-lived recovery on Friday, the USD/CHF resumed the downside on Monday. Recently it printed a fresh monthly low at 0.9626. It is hovering around 0.9650, about to post the sixth daily loss out of the last eight days.
A broad-based correction of the US dollar triggered the slide of USD/CHF last week. The negative momentum intensify further with recent comments from Swiss National Bank officials warning about inflation.
On Monday, Andrea Meachler, a board member of the SNB said the central bank won't hesitate to raise interest rates if inflation remains outside of the target. Also on Monday, Christine Lagarde, president of the European Central Bank and other governing council members, suggested a possibility of positive interest rates by the end of the third quarter.
The dollar weakened further amid an improvement in market sentiment at the beginning of the week. The DXY is falling 0.87%, trading at 102.10, the lowest level since April 26.
The USD/CHF continues to look for support. Below 0.9625, the next barrier might be seen at 0.9595 and then 0.9525. Now the immediate resistance is located at 0.9695, followed by 0.9735.
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
