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  • Swiss franc continues to be on-demand amid risk aversion.  
  • USD/CHF heads for the lowest close since September of last year.  

The USD/CHF pair is falling for the fourth trading day in-a-row as on the back of global risk aversion. The Swissy is among the top performs positing moderate gains versus majors and rising sharply against commodity and emerging market currencies.  

Equity prices are losing ground on Wall Street, with the DOW JONES down almost 1% and US and EZ bond yields are lower, all favor the demand for the Swiss franc, and also the Yen and Gold, safe-haven assets.  

Geopolitical risks, concerns about global growth, the ongoing situation in Hong Kong and some Emerging market jitters following a 25% decline in the Argentine peso that weigh on other Latin American currencies contributed to the negative sentiment. Expectations of more rate cuts from the Federal Reserve also contribute to limit the USD/CHF.  

The pair is hovering around 0.9700. Earlier today bottomed at 0.9681, the lowest level since September 27 and then rebounded modestly. A daily close clearly below 0.9700 could clear the way to more losses, targeting the next strong support seen at 0.9640.  

EUR/CHF test multi-month lows  

The Swiss franc is also higher against the Euro today. The EUR/CHF is also down for the fourth consecutive day, on its way to the lowest daily close since June 2017. Expectations of more easing from the European Central Bank, Brexit concerns and Italy’s political crisis keep the Euro under pressure against the Swiss.  

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