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  • Risk aversion allows CHF to stay strong on Friday.
  • 10-year US Treasury bond yield erases more than 3.5%.
  • US Dollar Index extends decline to below 97.50.

The USD/CHF pair came under renewed bearish pressure in the last hour and slumped to its lowest level since January 16th at 0.9639. As of writing, the pair was trading at 0.9640, losing 0.55% on a daily basis.

Investors seem to be looking to stay on the safe side going into the weekend amid heightened worries over the coronavirus death toll continuing to rise and weigh on the global economy. The 10-year US Treasury bond yield extended its slide and was last down 3.5% on the day.

USD looks to end week on a weak note

The sharp drop in the US T-bond yields seems to be weighing on the greenback as well. The US Dollar Index, which tracks the USD’s performance against a basket of six major currencies, fell sharply during the American session on Friday despite upbeat macroeconomic data releases and was last down 0.46% on the day at 97.42.

The University of Michigan’s Consumer Sentiment Index rose to 99.8 in Januar (final) from 99.3 in December and beat the market expectation of 99.1. Moreover, the core Personal Consumption Expenditures (PCE) Price Index ticked up to 1.6% on a yearly basis in December from 1.5%.

Technical levels to watch for