Forex
USD/CHF Pair Falls Over 1.49% as US Yields Dip
The USD/CHF pair ended the week lower due to falling US yields, which bolstered the Swiss franc. The pair rose 0.07% on Friday to 0.8010 but still shed over 1.49% for the week. Price action has been consolidative, with the pair stuck between the 50-day SMA at 0.8086 and the 100-day SMA at 0.7976.
The Relative Strength Index (RSI) indicates that sellers are in control, suggesting a bearish trading bias. If USD/CHF breaks below 0.8000, focus shifts to the 100-day SMA at 0.7976 and the August 20 low of 0.7949.
Historically, the Swiss Franc has gained safe-haven appeal during times of global yield compression. The US 10-year Treasury yield's retreat toward 3.80% narrows the yield differential in favor of the Swiss currency.