USD/CHF slides to fresh weekly lows below 0.9250 ahead of mid-tier US data

• USD/CHF fell sharply in the early trading hours of the European session.
• US Dollar Index remains on the back foot amid falling T-bond yields.
• Investors await Initial Jobless Claims and JOLTS Job Openings data from US.

After spending the Asian session fluctuating in a very tight range around 0.9300, the USD/CAD pair came under strong pressure in the European morning and dropped to its lowest level in a week at 0.9244. As of writing, the pair was losing 0.53% on a daily basis at 0.9246.

USD selloff remains intact

On Wednesday, the decent demand seen during the 10-year US Treasury note auction in the US triggered a sharp drop in Treasury bond yields and hurt the greenback. The US Dollar Index, which closed the previous two trading days in the negative territory and lost around 0.5% during that span, is currently losing 0.31% at 91.53.

Earlier in the day, Reuters reported that USD/CHF’s one-month risk reversals gauge,  the spread between call and put prices, turned positive for the first time since the inception of this data in March 2016. This development suggests that investors are starting to price a bullish outlook in the near term.

Later in the session, the US Department of Labor will publish its weekly Initial Jobless Claims data. Additionally, the US Bureau of Labor Statistics will release the January JOLTS Job Openings report.

Technical levels to watch for