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  • USD/CHF lost its traction in the early American session.
  • Renewed USD weakness is forcing the pair to continue to push lower.
  • Investors await Wall Street’s opening bell and Services PMI data from US.

After spending the first half of the day moving sideways in a tight range around 0.9430, the USD/CHF pair came under bearish pressure and was last seen losing 0.2% on the day at 0.9402.

USD selloff picks up steam on Monday

The selling pressure surrounding the greenback is forcing USD/CHF to push lower in the second half of the day. The US Dollar Index, which stayed relatively quiet around 93.00 earlier in the day, fell to a fresh weekly low of 92.81 in the last hour with US stock index futures posting strong daily gains.  

On Friday, the US Bureau of Labor Statistics announced that Nonfarm Payrolls in March surged by 916,000 and the positive impact of the impressive jobs report on sentiment  is being felt on Monday with investors returning from the Easter holiday.

Later in the session, the IHS Markit’s final reading of March Services PMI and the ISM’s Services PMI data from the US will be looked upon for fresh impetus. Nevertheless, the risk perception is likely to continue to impact the USD’s performance against its major rivals.  

Meanwhile, the benchmark 10-year US Treasury bond yield is staying below 1.75% and a break above that key level could help the USD find demand and trigger a recovery in USD/CHF.

Technical levels to watch for