USD/CHF slips below 0.9600 to refresh weekly low
- USD/CHF cheers broad US dollar weakness for the fifth day in a row.
- Greenback bears are in full form as coronavirus spreads in the US.
- House vote on the COVID-19 bill, virus developments will be in focus.
USD/CHF accelerates the five-day-old south-run to 0.9590, down 0.45%, amid the pre-European session on Friday. The pair have recently been cheering the broad US dollar weakness amid coronavirus (COVID-19) concerns.
The US recently surpassed China while flashing 81,321 cases of the virus infection, as per the New York Times. The pandemic has already pushed the world’s largest economy towards witnessing a spike in the weekly Jobless Claims while also likely to weigh on the unemployment data as well.
To combat the pandemic, the Senate passed a $2.2 trillion aid package while the Fed Chair showed readiness to use further measures to infuse markets if needed.
The US policymakers are likely to vote on the bill in the House of Representatives today. However, the Wall Street Journal raised doubts over the voting while citing a Republican lawmaker from Kentucky.
The market’s risk catalysts flash mixed signals with the US 10-year treasury yields stepping back to 0.80% and futures linked to S&P 500 and DJI30 down near 1.5%. On the contrary, the Asian stocks are posting gains
Moving on, the pair traders will keep eyes on the coronavirus headlines for fresh impulse while the voting on the bill could also offer additional direction.
For the immediate insight, the US President Donald Trump’s talks with his Chinese counterpart Xi Jinping will be watched closely as both of them are at loggerheads over the virus and its spread. Furthermore, the US keeps showing its dislike for China’s Huawei while restricting the global supply of chips to the company.
Technical analysis
A daily closing under 21-day SMA level of 0.9585 becomes necessary for the bears to decline further below 10-day SMA, at 0.9715 now.