USD/CHF trades at five-day lows near 0.9450 on broad USD weakness
- USD/CHF starts new week on a negative note.
- US Dollar Index pushes lower toward 97.00 on Monday.
- Wall Street looks to open in positive territory.
The USD/CHF pair tried to break above 0.9500 last week but failed to make a daily close there and finished the week in the negative territory. With the greenback struggling to find demand on Monday, the pair continued to edge lower and touched its lowest level in five days at 0.9442. As of writing, the pair was down 0.25% on a daily basis at 0.9455.
USD weakens against its major rivals
The US Dollar Index (DXY) staged a decisive rebound in the second half of the previous week and gained nearly 1% during that period as risk-off flows provided a boost to the USD.
Although the latest coronavirus figures from the US showed no signs of a slowdown in new infections, the market mood remains relatively upbeat on Monday, keeping the greenback under bearish pressure. As of writing, the US Dollar Index is down 0.35% on a daily basis at 97.15.
Meanwhile, the S&P 500 futures are up 0.25% on the day, pointing out to a positive start in Wall Street on Monday. If major equity indexes in the US push higher on Monday, the DXY could extend its daily slide toward 97.00 and further weigh on USD/CHF.
In the second half of the day, Pending Home Sales and the Federal Reserve Bank of Dallas' Manufacturing Outlook Survey will be featured in the US economic docket.
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.
