USD/CHF plunges near 0.9300 as DXY weakens amid improvement in risk appetite
- USD/CHF slips to near 0.9300 on progress in the Russia-Ukraine peace talks.
- A constructive step by Moscow and Kyiv toward a truce has brought a fresh wave of risk-on impulse.
- The DXY failed to capitalize on upbeat Consumer Confidence and JOLTS Job Openings.
The USD/CHF pair has attracted some significant offers near 0.9375 and has been dropped near 0.9300 as the improved risk appetite of investors fades off the rally in the mighty greenback. The constructive outcome from the Russia-Ukraine peace talks has cheered the market sentiment and a risk-on impulse has underpinned the demand for risk-perceived assets.
The Kremlin is cutting its military activity in northern Ukraine and its capital Kyiv as an initial step to feature a truce. The withdrawal of Russian troops from various parts of Ukraine has indicated a ceasefire between the nations going forward. Meanwhile, Ukraine is adopting a neutral status and has proposed to abstain from joining alliances. It is worth noting that Russia was not dominating the position in those regions however a withdrawal of Russian military activity from Mariupol city will be considered a significant step towards a ceasefire further.
On the dollar front, the US dollar index (DXY) has lost its ground and is oscillating near 98.00 amid an upbeat market mood. The outperformance of US Consumer Confidence and JOLTS Job Openings has failed to provide any material optimism for the greenback. Although, their outperformance has firmed the odds of a 50 basis points (bps) interest rate hike by the Federal Reserve (Fed) in May’s monetary policy.
Apart from the Russia-Ukraine peace talks, investors will focus on US ADP Employment Change and Gross Domestic Product (GDP) Annualized, which are due on Wednesday while the Swizz docket will unfold Swiss National Bank (SNB) Quarterly Bulletin in the same period.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
