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Swiss franc strengthens versus US dollar on US debt worries
USD/CHF fell 0.17% to around 0.7990, as Swiss franc gains were linked to shifting expectations around US borrowing costs and the Fed.
The Swiss franc edged higher against the US dollar, with the USD/CHF pair down 0.17% to near 0.7990 in Asian trading, according to FXStreet.
FXStreet said the move reflects renewed pressure on the dollar tied to US debt concerns. It pointed to a US Treasury plan announced on Wednesday to double the pace of debt repayment to help curb borrowing costs, which initially pushed Treasury yields and the dollar lower, before much of those losses were later recovered.
FXStreet also cited commentary from BBH suggesting the timing of the Treasury’s buyback signal is less comfortable, after long end buybacks were expanded shortly after the 30 year Treasury yield hit its highest level since 2007. The outlet said BBH’s view is that this points to strain on long end liquidity, weighing on US fiscal credibility and dragging the USD.
On the technical side, FXStreet noted USD/CHF is below the 20 day EMA at 0.8080, with the RSI at 38.8 in bearish territory, and identified support near 0.7990 and 0.7922. It said resistance is first seen at the 0.8080 level.