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USD/CHF slides to fresh multi-month lows, around 0.9630-25 region

  • USD/CHF remains under some selling pressure for the sixth straight session.
  • The US-China trade deal optimism does little to stall the ongoing downfall.
  • Traders now eye US monthly retail sales data for some meaningful impetus.

The greenback remained depressed against its Swiss counterpart and dragged the USD/CHF pair to fresh multi-month lows, around the 0.9630 region in the last hour.

The pair extended its recent pullback from levels just above mid-0.9700s and witnessed some follow-through selling for the sixth consecutive session on Thursday. Bulls seemed rather unimpressed by the prevalent risk-on mood, which tends to benefit the Swiss franc's perceived safe-haven status.

Bulls shrug off the prevalent risk-on mood

The conclusion of the long-awaited phase one trade deal between the world's two largest economies remained supportive of improving global risk sentiment. However, the fact that the deal was nearly priced in the market, the announcement did little to provide any meaningful impetus to the major.

This coupled with a subdued US dollar price action, despite a modest pickup in the US Treasury bond yields, also failed to lend any support to the major or stall the ongoing downfall to the lowest level since September 2018, suggesting further downside even from current levels.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of monthly retail sales data, which might influence the USD price dynamics and produce some short-term trading opportunities later during the early North-American session.

Technical levels to watch

 

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