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