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  • USD/CHF struggles to stage a convincing recovery on Monday.
  • US Dollar Index clings to modest gains near 91.00.
  • Cautious market mood is helping safe-haven CHF stay strong.

The USD/CHF pair, which plunged to its lowest level since early 2015 at 0.8884 on Friday, gained traction at the start of the week and climbed toward 0.8950. However, the pair struggled to push higher with the CHF attracting investors as a safe-haven and erased its gains. As of writing, USD/CHF was down 0.1% on the day at 0.8912.

Market mood turns sour on no-deal Brexit worries

Renewed fears over the EU and the UK failing to reach a trade deal seems to be weighing on market sentiment on Monday. The Euro Stoxx 50 and Germany’s DAX 30 indexes are down 0.6% and 0.42%, respectively, and the S&P 500 Futures are losing 0.35%.

In the meantime, the greenback is also taking advantage of risk-off flows and the US Dollar Index (DXY) clings to modest gains around 91, limiting USD/CHF’s downside for the time being. Last week, the DXY lost more than 1% and closed below 91 for the first time since April 2018.

There won’t be any significant macroeconomic data releases from the US in the remainder of the day and investors will keep a close eye on Wall Street’s main indexes’ performance. On Tuesday, the labour market report from Switzerland will be released at 0645 GMT.

Technical levels to watch for