- A combination of factors exerted pressure on USD/CHF for the second straight day.
- The USD remained depressed amid a pickup in the demand for the common currency.
- Softer risk mood benefitted the safe-haven CHF and contributed to the weaker tone.
The USD/CHF pair weakened further below the 0.9100 mark during the European session and dropped to 1-1/2-week lows in the last hour.
The pair extended this week’s rejection slide from the 0.9200 round-figure mark and witnessed some follow-through selling for the second consecutive session on Thursday. The downfall was sponsored by the prevalent US dollar selling bias and softer global risk sentiment.
The USD remained depressed through the first half of the trading action amid some follow-through buying around the shared currency, which remained supported by the overnight report that ECB officials are growing more confident on the region’s economic outlook.
Apart from this, a weaker tone surrounding the global equity markets benefitted the safe-haven Swiss franc and contributed to the USD/CHF pair’s decline to the 0.9080 horizontal support, which if broken will set the stage for an extension of the downward trajectory.
Thursday’s key focus will remain on the much-awaited ECB monetary policy decision, which might infuse some volatility in the FX market. Adding to this, the release of the US Initial Weekly Jobless Claims might influence the USD price dynamics and produce some trading opportunities.
Technical levels to watch
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