Dollar Bounces Back to Test 200-Day EMA Against Swiss Franc

The US dollar's value against the Swiss franc has been volatile in recent sessions, but Christopher Lewis of DailyForex notes that it has bounced back to test its 200-day EMA after an initial decline. The dollar had fallen as interest rates rose in America, while the Swiss maintained a zero-rate policy.

The market's reaction may have been influenced by Wednesday's announcement that the US Treasury would double its purchases of 30-year bonds, sparking concerns about quantitative easing or a financial system crisis.

Despite this, Lewis believes the dollar's value against the franc has become overdone and sees potential for a bullish market in USD/CHF. The positive carry on the pair remains an attractive feature, but volatility is expected to increase as global events unfold, including concerns from the Middle East and Federal Reserve policy decisions.