USD / CHF consolidates below 0.9035 against weaker US dollar


  • The USD / CHF maintains lower ground at the start of the European session.
  • The US dollar remains at multi-month lows amid stable US Treasury yields.
  • Risk aversion among investors is increasing demand for the safe haven.

The depreciating movement of the US dollar keeps the USD / CHF pegged at the start of the European session. The pair opened higher but retreated quickly to the session lows at 0.9016, where it is now wobbling.

The US Dollar Index (DXY), which tracks the performance of the greenback against its rivals, remains depressed near multi-month lows at 90.10. The greenback has tracked yields on US Treasuries, which are trading with a modest gain at 1.64%.

The slow movement of the US dollar could be attributed to the continued reassurance from Fed officials about continuing the current monetary policy to stimulate economic growth. The mixed US economic data lowers expectations of any accommodative monetary policy reversal earlier.

The market is turning its back on the US dollar, as comments from Fed officials may mean that no immediate interest rate hike is expected.

Meanwhile, investors are looking for other, safer instruments in the face of rising coronavirus cases in Asia-Pacific. The Swiss franc, known for its ultra-safe haven appeal, is attracting the rush to fund flows. This keeps the pair grounded near the lower levels.

Investors are looking to the release of US building permit data for April and the housing market launch to find new business opportunities.

For now, the momentum around US Treasury yields continues to play with the performance of the pair.

USD / CHF Additional levels

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