USD/CHF hits its lowest level since September 2018
With European equities reversing earlier gains, the franc is gaining further strength on the day and that has seen USD/CHF fall below 0.9600 for the first time since September 2018.
From a technical perspective, there isn’t much support left before a retest of the September 2018 low of 0.9542 if sellers can keep a break under 0.9600 ahead of the close today.
It has been quite a turnaround in risk sentiment in the European morning as we now see US yields also tumble lower after the earlier optimism.
2-year yields are down by a nearly whopping 20 bps to 0.727% on the day (!) with 10-year yields now down by 9 bps to 1.057% currently.
The SNB surely can’t be too happy about the situation but the best they can do is to try and smooth out the appreciation of the franc at this stage still.