- USD/CHF is falling for the third straight day on Friday.
- US Dollar Index continues to push lower below 93.50.
- Eyes on political developments surrounding US stimulus talks.
After spending the Asian session in a very tight range near 0.9170 on Friday, the USD/CHF pair lost its traction and slumped to a 20-day low of 0.9122. As of writing, the pair is losing 0.43% on a daily basis at 0.9127.
DXY remains depressed ahead of Wall Street’s opening bell
The broad-based USD weakness on Friday seems to be forcing USD/CHF to push lower. Renewed optimism for US lawmakers agreeing on a wide range of standalone relief bills to support the economy provided a boost to market mood and made it difficult for the greenback to find demand.
The US Dollar Index (DXY), which tested 94.00 earlier in the week, closed in the negative territory on Thursday and extended its slide on Friday. At the moment, the DXY is down 0.25% on the day at 93.35 and the S&P 500 futures are up 0.45%, suggesting that risk flows could continue to dominate the financial markets.
However, a negative shift in market sentiment, in case investors lose hope for a coronavirus aid bill before the presidential election, could help the USD gather strength and allow USD/CHF to stage a rebound in the second half of the day.
Technical levels to watch for
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