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  • USD/CHF is moving  sideways in a tight range on Monday.
  • US Dollar Index struggles to build on last week’s gains.
  • Investors stay focused on US stocks, T-bond yields.

The USD/CHF pair touched its highest level since mid-July at 0.9419 on Friday and gained nearly 100 pips on a weekly basis. Amid a lack of significant fundamental drivers at the start of the week, the pair is trading in a very tight range around 0.9400.

DXY holds below 93.00 on Monday

The broad-based USD strength fueled USD/CHF’s climb last week. The US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, advanced to a fresh multi-month high of 92.91 on Friday but seems to have gone into a consolidation phase on Monday. Currently, the index is virtually unchanged on the day at 92.77.

The 1.5% decline witnessed in the benchmark 10-year US Treasury bond yield seems to be making it difficult for the DXY to preserve its bullish momentum. However, the US stock index futures trade in the negative territory and helping the USD stay resilient against its rivals.  

Following the closing bell on Friday,  Archegos Capital Management, a US-based large hedge fund, announced that it defaulted on margin calls  and triggered a selloff in financial stocks, including Nomura and Credit Suisse. Currently, the S&P 500 Futures are lowing 0.42% on the day and a sharp decline in Wall Street’s main indexes in the second half of the day could provide a boost to the USD.

Technical levels to watch for