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USD/CHF plunges to 5-month lows, around mid-0.9800s amid notable USD weakness

2019-06-20 20:25

  • The post-FOMC USD selloff showed little signs of easing on Thursday.

  • Technical selling below 0.9900 handle further accelerates the downfall.

  • The prevalent risk-on mood fails to lend any support or stall the decline.

The USD/CHF pair added to the overnight weakness and tumbled to five-month lows, around mid-0.9800s in the last hour.

Having failed to find acceptance above the key parity mark, the pair witnessed an intraday pullback from over two-week lows and continued losing ground through the mid-European session on Thursday.

The post-FOMC bearish pressure surrounding the US Dollar remains unabated and turned out to be one of the key factors behind the pair's sharp follow-through decline for the second consecutive session.

The Fed indicated the possibility of easier monetary policy later this year amid mounting concerns over a slowing economy and subdued inflation, which dragged the greenback to its lowest level in three months.

Adding to this, possibilities of some short-term trading stops being triggered on a sustained break below the 0.9900 handle further collaborated towards accelerating the downfall to the lowest level since early March.

Meanwhile, the prevailing risk-on mood, which tends to undermine demand for the Swiss Franc's relative safe-haven status, did little to inspire the bulls or lend any support and stall the ongoing steep decline. 

Next on tap will be the US economic docket - featuring the release of Philly Fed Manufacturing Index and the usual initial weekly jobless claims, which will be looked upon for some short-term trading opportunities.

Technical levels to watch


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

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