- The USD / CHF again faced a rejection near the 100-day SMA against the backdrop of a general weakness in the dollar.
- The Fed’s announcement to provide up to $ 2.3 trillion in loans weighed on the dollar again.
- The prevailing risk climate has undermined the safe haven status of the CHF and helped limit losses.
The USD / CHF weakened slightly at the start of the North American session and fell to one-week lows around the region of 0.9665 in the past hour.
Having repeatedly failed to return above the 100-day SMA, the pair suffered further selling pressure on Thursday and was weighed down by strong intraday selling pressure surrounding the US dollar.
The greenback lost a little more ground in response to a further drop in weekly US unemployment claims data. Downward pressure was further compounded after the Fed announced loans of up to $ 2.3 trillion to support the economy.
The negative factor, to some extent, was offset by the positive mood in the stock markets, fueled by the latest optimism that the coronavirus pandemic may soon reach its peak.
Risk flows have eroded the safe haven status of the Swiss franc and have proven to be the only factor that has helped limit further losses, at least for the time being and before the expected speech by Fed President Jerome Powell.
Technical levels to watch