USD/CHF pares early losses, turns flat near 0.9790
- Risk aversion continues to dominate markets on Tuesday.
- US Dollar Index rebounds above 99.30 in European session.
- Coming up: Richmond Fed Manufacturing Index and CB Consumer Confidence Index from US.
The USD/CHF closed the first day of the week with small gains below 0.9800 and struggled to climb above that level on Tuesday. After sliding to a session low of 0.9768, the pair pared its early losses in the last hour and was last seen trading at 0.9788, where it was virtually unchanged on a daily basis.
Although the flight-to-safety seems to have lost its intensity when compared to Monday, risk-off flows continue to dominate the market on Tuesday and make it difficult for the pair to make a decisive move in either direction. Concerns over the coronavirus outbreak having a long-lasting negative impact on the global economy continues to ramp up the demand for both the CHF and the USD.
At the moment, the 10-year US Treasury bond yield is down 1.6% on the day and stays dangerously close to all-time lows that it set back in July 2016 while major European equity indexes erase between 0.7% and 0.8%.
In the second half of the day, the Richmond Fed Manufacturing Index and the Conference Board's Consumer Confidence Index from the US will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index is up 0.05% on the day at 99.35. Investors will be paying close attention to Wall Street's and T-bond yields' performance as well.
Technical levels to watch for