USD/CHF capped below 0.9130, is testing support at 0.9010 area

FX

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  • USD/CHF heads south for the fifth day in a row to test support at 0.9090/00 area.
  • The US dollar depreciates across the board on a moderately risk-on market.

The US dollar remains on the back foot against the Swiss franc, trading lower for the fifth consecutive day amid a broad-based USD weakness. With upside attempts capped below 0.9125/30, the pair has turned lower again to retest support area at 0.9090/00

The greenback has depreciated across the board on Wednesday amid a moderately positive risk sentiment as the latest news about the promising results of Pfizer’s vaccine has eased concerns about the record COVID-10 infections worldwide.

Drugmaker Pfizer has lifted market mood, announcing that, according to the latest tests, its coronavirus vaccine is 95% effective and 94% on adults beyond 65 years. The market celebrated the news with moderate advances in the European equity markets which has weighed on the safe-haven greenback.

US stocks have dipped into negative territory after a slightly positive opening. The US Dollar Index, though, remains negative, on course to confirm a five-day losing streak, and approaching two-month lows at 92.10.

Regarding macroeconomic data, the better than expected US housing starts, which rose to 1.53 million in October, beating market expectations of a 1.46 million reading, have had a minimal impact on the pair.

Technical levels to watch

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