USD/CHF falls toward 0.9650 on persistent USD selloff
FXStreet News

USD/CHF falls toward 0.9650 on persistent USD selloff

  • USD/CHF is down more than 50 pips on Tuesday.
  • Strong risk appetite makes it difficult for USD to find demand.
  • US Dollar Index is testing 99 ahead of macroeconomic data releases. 

The USD/CHF pair closed the first day of the week virtually unchanged above 0.9700. However, the broad-based selling pressure surrounding the greenback caused the pair to lose its traction on Tuesday. As of writing, USD/CHF was down 0.61% on the day at 0.9658.

USD’s market valuation impacts USD/CHF movements

On Monday, the action in the FX markets remained subdued due to the Memorial Day holiday in the US. With the trading volume returning to normal levels on Tuesday, the US Dollar Index (DXY) continued to edge lower.

The upbeat market mood as reflected by rising global equity indexes seems to be causing the safe-haven USD to lose interest. At the moment, the DXY is down 0.72% on a daily basis at 99.08.

In the second half of the day, the US economic docket will feature the New Home Sales and Conference Board’s Consumer Confidence data. 

Meanwhile, the S&P 500 futures are up nearly 2% on the day and the USD is likely to continue to weaken against its rivals if Wall Street’s main indexes surge higher. On the other hand, investors will keep an eye on fresh developments surrounding the US-China conflict and a negative shift in the market mood could help the greenback stage a rebound and allow the pair to retrace its drop.

Technical levels to watch for


FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.