- Rising number of coronavirus infections globally weigh on sentiment.
- Major European equity indexes suffer heavy losses on Friday.
- US Dollar Index extends slide toward 98 ahead of key data.
The selling pressure surrounding the greenback and the intense flight-to-safety dragged the USD/CHF pair to its lowest level since September 2018 at 0.9610 on Friday. Although the pair staged a modest recovery in the last hour, it continues to trade in the negative territory. As of writing, the pair was down 0.4% on the day at 0.9640.
The rising number of coronavirus infections at an accelerated rate globally continues to ramp up the demand for safe-haven assets. The 10-year US Treasury bond yield extended its slide and renewed its all-time lows on Friday to reflect the dismal mood. Additionally, major equity indexes in Europea are erasing nearly 4% on the day.
Fed rate cut odds increase sharply
Meanwhile, with markets pricing an imminent Fed rate cut in March, the greenback is struggling to find demand to keep the bearish pressure on the pair intact. According to the CME Group FedWatch Tool, the probability of a 25 basis points and a 50 basis points rate cut now stands at 55% and 45%, respectively.
Technical levels to watch for
|Today last price||0.9645|
|Today Daily Change||-0.0050|
|Today Daily Change %||-0.52|
|Today daily open||0.9695|
|Previous Daily High||0.9775|
|Previous Daily Low||0.9675|
|Previous Weekly High||0.9851|
|Previous Weekly Low||0.977|
|Previous Monthly High||0.9768|
|Previous Monthly Low||0.9613|
|Daily Fibonacci 38.2%||0.9713|
|Daily Fibonacci 61.8%||0.9737|
|Daily Pivot Point S1||0.9655|
|Daily Pivot Point S2||0.9615|
|Daily Pivot Point S3||0.9555|
|Daily Pivot Point R1||0.9755|
|Daily Pivot Point R2||0.9815|
|Daily Pivot Point R3||0.9856|
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.