USD/CHF hits fresh lows below 0.9700
- Swiss franc holds strong despite the improvement in risk sentiment.
- US dollar posts mixed results on Monday, DXY modestly lower.
The USD/CHF dropped further during the American session and printed a fresh low under 0.9700. It then rebounded, and as of writing, it trades at 0.9705, attempting to move off lows but still under pressure.
USD/CHF down as risk appetite goes up
The Swiss franc is having a good performance on Monday despite the decline of the yen and gold prices amid risk appetite. The improvement in market sentiment came from the trade front as Chinese officials are traveling to the US to sign the “phase one” trade deal. Also, the tensions in the Middle East are abating, fueling risk appetite.
The greenback is posting mixed results. Recently the DXY turned negative following reports that the US is going to remove the “currency manipulator” tag to China. The trade deal is expected to be signed on Wednesday.
The USD/CHF bottomed at 0.9693, the lowest in five days. On Monday, it is falling for the third day in a row as it continues to retreat after hitting the 20-day moving average last week at 0.9762. The greenback was rejected from above 0.9750 and has been falling since then. Around 0.9675 is the next support for USD/CHF; below, the focus might turn to the December low at 0.9645.