- Swiss franc among top performers of the week, as investors look for safe-haven assets.
- A weaker US dollar also contributed to the 280-pips weekly decline in USD/CHF.
The USD/CHF bottomed at 0.9317 during the American session, the lowest level since February 2018. Afterwards, the US dollar managed to stabilize and the pair rebounded, rising toward 0.9400. Near the end of the week, it is hovering around 0.9380 about to post a weekly decline of almost 300 pips.
Better-than-expected US data failed to offer support to the greenback that dropped versus majors once again on Friday. The DXY reached the lowest level in a year at 95.73, before bouncing back to 96.00.
As US yields moved off record lows, greenback’s weakness eased. The 10-year bottomed at 0.67 and then climbed to 0.77%. In Wall Street, the Dow Jones is down just 2.0% and the Nasdaq 3.15%. It is a red end to a terrible week for financial markets that included an emergency rate cut from the Federal Reserve.
Volatility is likely to remain elevated next week. Also, if the Swiss franc continues to rise, market talk about an intervention from the Swiss National Bank should not be ruled out.
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