- USD/CHF is staging a modest rebound on Thursday.
- US Dollar Index recovers above 92.50 ahead of US data.
- USD/CHF looks to snap a five-day losing streak.
After closing the previous five trading days in the negative territory, the USD/CHF pair staged a rebound on the back of broad-based USD strength on Thursday and was last seen gaining 0.2% on the day at 0.9128.
Risk aversion supports USD on Thursday
The US Dollar Index (DXY) remained on the back foot during the first half of the week as the coronavirus optimism made it difficult for the greenback to find demand as a safe-haven. With major European equity indexes turning south on Thursday, however, the DXY capitalized on risk-off flows and was last seen gaining 0.25% on the day at 92.55.
Meanwhile, the S&P 500 Futures are down 0.2% on the day, suggesting that the market mood is likely to remain sour in the second half of the day.
Later in the session, the US Department of Labor’s weekly Initial Jobless Claims, which is expected to edge lower to 707K in the week ending November 14th, will be looked upon for fresh impetus. Additionally, the Federal Reserve Bank of Philadelphia will release its Manufacturing Survey for November alongside the National Association of Realtors’ Existing Home Sales for October.
Nevertheless, market participants are likely to remain focused on risk perception and USD/CHF could snap its losing streak if the USD preserves its strength with a decline in Wall Street’s main indexes.
Technical levels to watch for
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