USD/CHF remains depressed below 0.9300 as USD retreats
- USD/CHF edges lower on Monday in the early Asian trading hours.
- The US Dollar Index slips below 94.00 as the new trading week begins.
- Renewed China’s Evergrande fears, inflation concerns, US-China political tension favors safe-haven Swiss franc.
The USD/CHF extends the previous week’s declines on Monday. After testing the high above 0.9560, the pair failed to preserve the momentum and record a fall of more than 70-pips in three sessions. At the time of writing, USD/CHF is trading at 0.9292, down 0.19% for the day.
The depreciative move in the greenback pushed USD/CHF on the edge. The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, fell below 94.00 with 0.18% losses. It is worth noting that, S&P 500 Futures is trading at 4,355.50, up 0.28% gains. Investors digested Fed’s tapering timeline as soon as November. The Personal Consumption Expenditure (PCE) Index rose 0.4% in August, adding to the inflationary pressure. The ISM manufacturing Purchasing Managers Index (PMI) jumped 61.1 in September, above the market expectations of 59.6.
On the other hand, the Swiss franc gains on the renewed contagion risk of Chinese debt-ridden property giant Evergrande's default risk after it missed the interest payment in the last month. In addition to that China flew nearly 100 military planes into Taiwan airspace, the move that could upset the US political space.
As for now, traders are bracing for Swiss Retails Sales, Inflation Rate, and US Factory Orders to gauge the market sentiment.
USD/CHF additional levels