USD/CHF declined 0.4% to test critical support at 0.9100 despite a surprisingly strong US Manufacturing PMI reading of 51.2, exceeding forecasts of 49.5. The pair's weakness reflects broader dollar selling pressure that has overwhelmed positive US data. The PMI expansion, marking the first reading above 50 in six months, initially sparked a brief dollar rally before sellers regained control. Swiss franc strength stems from its safe-haven appeal amid global uncertainty and SNB's relatively hawkish stance. Technical indicators show USD/CHF breaking below its 50-day moving average at 0.9125, with next support at 0.9050. The Dollar Index (DXY) simultaneously dropped 0.3% to 103.45, confirming widespread USD weakness. Traders are positioning for potential further declines unless upcoming US data significantly beats expectations, with focus turning to this week's jobless claims and consumer confidence figures.
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