USD/CHF (current price: 0.9735)
The Dollar fell sharply since last week’s lackluster U.S. GDP report, as investors lost their faith that the FED will raise its benchmark rate anytime soon. The BOE and the RBA both cut their rate this week, and that helped the safe haven currency that already faces negative interest rates in Switzerland. The pair is now back to the long standing declining trading channel, after drifting over it towards the end of last month, as Brexit-fears eased somewhat.
Our assessment: USD/CHF is way below parity now since the Dollar started losing ground, as some worrying numbers were released in the past few weeks in the U.S. Further downside is possible, especially if the Job’s number delivers a negative surprise today.
