- USD / CHF turns lower after renewing weekly highs on Wednesday.
- CHF appears to be capitalizing on cautious market sentiment on Thursday.
- The DXY US Dollar Index remains below 93.00 ahead of US inflation data.
The pair USD/CHF it closed the first three days of the week in positive territory and gained nearly 200 pips during that rally. However, the pair has lost its momentum after hitting a weekly high of 0.9194 on Wednesday and has started to consolidate its gains on Thursday. At time of writing, USD / is down 0.24% on the day at 0.9146.
The DXY index remains below 93.00 ahead of US inflation data.
The cautious attitude of the market, reflected by the decline in European equity indices, appears to be helping USD / CHF to make a correction. Following the surge in risk appetite triggered by optimism for a coronavirus vaccine earlier in the week, Investors appear to have shifted their approach due to the increasing number of COVID-19 cases in Europe. At the moment, Germany’s Euro Stoxx 50 and DAX 30 indices are down 0.4% and 0.77%, respectively.
Later in the day, the U.S. Bureau of Labor Statistics will publish October CPI consumer price index figures along with weekly initial jobless claims report from the US Department of Labor
Before this data, the US Dollar DXY Index is down 0.18% on the day at 92.82. Meanwhile, the yield on 10-year US Treasuries, which gained nearly 20% during the first half of the week, fell 0.4% on Thursday, making it difficult for the dollar to maintain its strength against their rivals.
Credits: Forex Street
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