The USD/CHF pair edged lower through the early European session and dropped to near four-week lows, closer to the 0.9400 round-figure marks.
The pair extended last week’s rejection slide from the 0.9535-30 horizontal resistance and remained depressed for the fifth consecutive session on Monday. The downfall was exclusively sponsored by sustained selling around the US dollar and seemed rather unaffected by the upbeat market mood, which tends to undermine demand for the perceived safe-haven Swiss franc.
The incoming positive economic data provided further evidence that the worse of the coronavirus pandemic was probably over and revived hopes of a sharp V-shaped global economic recovery. This led to a further improvement in the global risk sentiment, albeit worries about a continuous rise in new coronavirus cases held investors from taking excessive risk.
Investors also remain concerned that the second wave of COVID-19 infections in the United States could trigger renewed lockdown measures and once again put the brakes on economic activity. This, in turn, kept exerting some downward pressure on the greenback, which failed to gain any respite from a goodish intraday pickup in the US Treasury bond yields.
USD/CHF SHORT (Sell)
ENTER AT: 0.94310