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  • USD/CHF remained depressed through the first half of the trading action on Thursday.
  • Probably Biden victory in the US election continued exerting some pressure on the USD.
  • The prevalent risk-on mood might undermine the safe-haven CHF and help limit losses.

The USD/CHF pair lost some ground during the first half of the European trading session and slipped below the 0.9100 mark, hitting one-week lows in the last hour.

Following the previous day’s volatile swings in both directions, the pair met with some fresh supply on Thursday and was being pressured by sustained US dollar selling. The US presidential battle remains undecided but Democratic candidate Joe Biden has taken the lead in the key swing states. The likelihood of Biden getting closer to claiming the White House was seen as one of the key factors that kept the USD bulls on the defensive.

Apart from this, the ongoing steep decline in the US Treasury bond yields further weighed on the already weaker sentiment surrounding the greenback and exerted some pressure on the USD/CHF pair. However, the prevalent upbeat market mood – as depicted by a strong follow-through positive move in the US equity futures – seemed to undermine the safe-haven Swiss franc and help limit the downside, at least for the time being.

Investors also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the latest monetary policy update by the Fed, due later this Thursday. In the meantime, the release of usual Initial Weekly Jobless Claims data from the US will be looked upon for some short-term trading opportunities during the early North American session.

Technical levels to watch