- USD/CHF dropped below 0.9000 for the first time since January 2015.
- US Dollar Index remains on track to close in the negative territory.
- SVME Manufacturing Purchasing Managers Index (PMI) will be released from Switzerland.
The USD/CHF slumped to its lowest level since January 2015 at 0.8999 amid a fresh USD selling-wave in the early American session. With the markets turning subdued in the last hour, the pair staged a technical rebound and was last seen losing 0.1% on a daily basis at 0.9030.
USD selloff continues on falling T-bond yields
Wall Street’s main indexes edged higher following the opening bell on Monday and the 10-year US Treasury bond yield extended its slide to further weigh on the greenback. At the moment, the 10-year T-bond yield is down 4.7% on the day and the US Dollar Index is losing 0.2% at 92.10.
Earlier in the day, the only data published from the US showed that the business activity in Texas’ manufacturing sector expanded at a modest pace in August with the Dallas Fed Manufacturing Business Index improving from -3 to 8. Nevertheless, investors largely ignored this report and the negative impact of the FOMC’s policy shift on the USD remained unabated.
Commenting on the Fed’s decision to target average inflation, “we believe in many circumstances it would be appropriate to aim for a modest overshoot to show inflation can operate on both sides of the goal,” Federal Reserve’s Vice Chairman Richard Clarida said on Monday.
On Tuesday, the SVME Manufacturing Purchasing Managers Index (PMI) released by the Schweizerischer Verband für Materialwirtschaft und Einkauf and Credit Suisse from Switzerland will be looked upon for fresh impetus.
Technical levels to watch for
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