Analysts at MUFG Bank, continue to see the USD/CHF pair with a bearish perspective with no much support until the 0.8500 area. They consider Biden’s victory supports the outlook for a weaker US dollar.
“Over the past week the CHF has outperformed alongside the EUR as broad-based USD weakness has accelerated. USD/CHF has broken below key support at the 0.9000-level, and there now little in the way of support until 0.8500-level. It creates scope for further CHF gains in the near-term.”
“We continue believe that the election victory for Joe Biden supports our outlook for further USD weakness. We still expect the Fed to step up monetary easing to support the economic recovery following the weaker payrolls report. At the same time, it should increase pressure on Congress to reach a bipartisan deal on providing more fiscal stimulus.”
“We believe it is premature to see a sustainable reversal lower for currency debasement trades especially if inflation picks up while loose monetary policy remains in place. The CHF has been one of the main beneficiaries of the currency debasement trade alongside the price of gold.”
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.