- USD/CHF continued losing ground for the fourth consecutive session amid sustained USD selling.
- Dovish Fed expectations continued acting as a headwind for the greenback and exerted pressure.
- The risk-on environment did little to weigh on the safe-haven CHF or lend any support to the pair.
The USD/CHF pair weakened further below the key 0.9000 psychological mark and dropped to the lowest level since February 24 during the mid-European session.
The pair prolonged its recent bearish trajectory and witnessed some follow-through selling on the first day of a new trading week. This marked the fourth consecutive day of a negative move and was exclusively sponsored by the prevalent bearish sentiment surrounding the US dollar.
The USD struggled to capitalize/preserve its modest intraday gains, instead met with some fresh supply and dropped to near two-and-half-month lows amid dovish Fed expectations. Friday's dismal US monthly jobs report reaffirmed that the Fed will keep interest rates low for a longer period.
The headline NFP showed that the US economy added only 266K jobs in April, far lower than consensus estimates pointing to a reading of nearly one million. Adding to this, the previous month's reading was revised down and the unemployment rate edged higher to 6.1% from 6.0% in March.
Meanwhile, the underlying bullish tone in the financial markets, which tends to weigh on the safe-haven Swiss franc, also did little to lend any support to the USD/CHF pair. That said, slightly oversold conditions on short-term charts might help limit the downside, at least for now.
There isn't any major market-moving economic data due for release from the US on Monday. Hence, the USD price dynamics will continue to play a key role in influencing the USD/CHF pair. Apart from this, the broader market risk sentiment will also be looked upon for some trading opportunities.
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
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'