Search ForexCrunch
  • USD/CHF remained under some heavy selling for the third consecutive session on Monday.
  • Coronavirus concerns continued benefitting traditional safe-haven currencies, like the CHF.
  • The USD was further weighed down by plunging US bond yields, Fed rate cut speculations.

The USD/CHF pair continued losing ground through the mid-European session on Monday and tumbled to mid-0.9550s, the lowest level since September 2018 in the last hour.

The pair failed to capitalize on its early uptick to levels just above mid-0.9600s, rather met with some aggressive supply and drifted into the negative territory for the third consecutive session on Monday.

Bears remain in full control amid coronavirus concerns

The pair added to last week’s heavy losses and witnessed some follow-through selling amid growing market worries over the impact of the global outbreak of the deadly coronavirus on the world economy.

The concerns offset the early optimism led by speculations of a coordinated interest rate cut by the top central banks and led to a fresh leg down in equity markets, which boosted the Swiss franc’s safe-haven status.

The global flight to safety dragged the US Treasury bond yields to fresh all-time lows, which coupled with Fed rate cut speculations weighed heavily on the US dollar and contributed to the downfall.

Meanwhile, the ongoing slide seemed rather unaffected by extremely oversold conditions. Traders now look forward to the US ISM Manufacturing PMI for some immediate respite for the USD bulls.

Technical levels to watch