USD/CHF slumps to fresh multi-week lows near 0.9000
- USD/CHF is falling sharply after closing in the positive territory on Monday.
- US Dollar Index drops to its lowest level since April 2018 below 91.50.
- Wall Street's main indexes post impressive gains on Tuesday.
The USD/CHF pair came under strong bearish pressure during the American trading hours and dropped to its lowest level in three weeks at 0.8999. As of writing, the pair was trading at 0.9004, losing 0.95% on a daily basis.
USD selloff intensifies
The broad-based USD weakness seems to be causing USD/CHF to push lower on Tuesday. The US Dollar Index (DXY) closed the first day of the week modestly higher and stayed relatively quiet around 91.80 for the majority of the day. With the S&P 500 and the Nasdaq Composite starting the first day of the month at fresh all-time highs, however, the DXY turned south and plunged to its lowest level since April 2018 at 91.26.
Earlier in the day, the data from the US showed that the business activity in the manufacturing sector continued to expand at a robust pace in November. The IHS Markit's Manufacturing PMI and the ISM's Manufacturing PMI arrived at 56.7 and 57.5, respectively.
Meanwhile, FOMC Chairman Jerome Powell repeated on Tuesday that the Federal Reserve remains committed to using all of its tools to support the economic recovery. Powell further noted that more fiscal support will be needed. Nevertheless, these comments had little to no impact on market sentiment nor the greenback's performance against its rivals.
On Wednesday, the Swiss Federal Statistical Office will release the Consumer Price Index (CPI) data.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
