- US yields reverse and weaken the greenback.
- Swiss franc among top performers of the day.
The USD/CHF dropped further during the second half of the American session and bottomed at 0.9769, the lowest level since September 26. The pair lost more than two hundred pips in December and is having the worst month since June.
The Swiss franc, the yen and gold rose amid demand for safe-haven assets. The risk aversion tone across the bond market and currencies is not seen in Wall Street where equity prices are up. The Dow Jones gains 0.35% and the Nasdaq 0.55%.
US yield are down significantly after a reversal. The 10-year dropped from 1.95% to 1.90% and weigh on the US dollar. Economic data from the United States did not help the dollar: Philly Fed dropped more than expected in December (0.3 vs 8.0) and Existing Home Sales (5.34M vs 5.44).
Fears about a hard Brexit also contribute to the demand for the Swiss franc. The EUR/CHF fell to 1.0870, adding also strength to CHF. Ahead of the Asian session, the technical outlook for USD/CHF is biased to the downside with the pair looking for a support level.
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