USD/CHF slips below 0.8800 mark for the first time since January 2015

The USD/CHF pair refreshed multi-year lows during the early North American session, with bears now looking to extend the downward trajectory further below the 0.8800 mark.

The pair failed to capitalize on its intraday uptick, instead met with some fresh supply near the 0.8825 region and drifted into the negative territory for the fourth consecutive session on Thursday. The prevalent bearish sentiment surrounding the US dollar was seen as one of the key factors that capped the early attempted recovery move.

Investors remain convinced about the likelihood of more US financial aid package. This, along with expectations that the Fed will keep interest rates lower for a longer period, continued weighing on the buck. In fact, the USD Index fell to its lowest level since April 2018 and failed to gain any respite from upbeat Initial Jobless Claims data.

According to the US Department of Labor (DOL), the number of Americans filing for unemployment-related benefits fell to 787K during the week ending December 26. This was well below the 833K expected and the last week's upwardly revised reading of 806K (803K reported previously), albeit did little to impress the USD bulls.

Meanwhile, indications of a subdued opening in the US equity markets did little to influence the Swiss franc's safe-haven demand or provide any meaningful impetus. Nevertheless, the USD/CHF pair remains on track to post its lowest monthly close since April 2014 and end the year on a downbeat note, recording around 9% fall in 2020.

Technical levels to watch