USD/CHF stumbles to a fresh weekly low

The USD/CHF pair is poised to finish the week with solid losses of 1.30%. The market sentiment is relatively negative, which constitutes a headwind for the USD/CHF.

The USD/CHF tumbles on the back of worse than expected US PMI data, further extending its weekly losses, as sentiment deteriorates due to the abovementioned and US tech firms’ soft earnings reports. Investors sought safety assets and peers, bolstering the Swiss franc. The USD/CHF pair is trading at 0.9631, down by 0.34%.

US equities are tumbling across the board, while the greenback drops 0.11%, as shown by the US Dollar Index at 106.483. US bonds jump, spurring a drop in US Treasury yields, led by the 10-year yield down ten bps, at 2.776%-

The USD/CHF began trading around the 0.9660 region and rallied towards the daily high at 0.9700. however, buyers struggled to break resistance, and the USD/CHF fell to the daily low at 0.9599 before settling at the current exchange rate.

The USD/CHF hourly chart depicts the downtrend accelerated during the day, aligned with Thursday’s note that I wrote about the major. A breach of the latter (0.9675) will immediately expose the bottom trendline of the aforementioned ascending channel, meaning that the USD/CHF next target would be 0.9600. That happened on Friday.