USD/CHF RESUMES ITS DOWNTREND AND HITS FRESH WEEK LOWS BELOW 0.9245

Dollar plunges 0.5% on the day to test a weekly low at 0.92 5. US Treasuries fall on negative market sentiment. Concerns over rising cases of COVID-19 raise doubts about China’s economic recovery. The greenback’s reversal to Wednesday’s highs near 0.9300 is piling up in Thursday’s European trade as the pair attempts fresh intra-week lows below 0.92 5 after a slight recovery from 0.9285 earlier. From a broader perspective, the pair continues its downward trend from the 0.93 0 resistance area tested earlier in the week and is dangerously close to the key support barrier around 0.9210/20. DOLLAR COULD DECLINE IN US BOND YIELD A lack of primary indicators in the economic calendar left US Treasury yields modestly lower, with the yield on the 10-year note down 2. basis points to 3.862 percent as market sentiment dissipated. depressing demand for the US dollar. , A surge in China’s COVID-19 infections after the government abandoned its zero-Covid policy is overwhelming the country’s health system and dashing market hopes for a sustained recovery in the world’s second-largest economy. Against this background, some countries have begun to impose restrictions on travelers from China. The United States and Italy have introduced mandatory tests for arrivals from Asian countries, and India recently announced a similar measure. In addition, rising tensions in Ukraine, where the Russian military bombarded Kiev and other cities after Putin refused to accept Zelensky’s 10-point peace plan, also helped dampen market sentiment. expect improvement on wednesday. Economic expectations improved to – 2.8 in December compared to -50.5 of the market and -57.5 of last month. Weekly US jobless claims and crude oil inventory numbers will be tracked today in an otherwise thin post-Christmas calendar.

Steve Walker

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