USDCHF falls on U.S. /China tensions.
USDCHF continues to fall today – driven mostly by the safe-haven inflows into the Swiss franc as the markets are witnessing the escalation of the U.S./China tensions after the missile destroyer USS John S. McCain conducted a “routine” transit of the Taiwan Strait on Wednesday and China sent more fighter jets into Taiwan’s air defence zone. This was followed by Taiwan’s foreign minister saying it would fight to the end if China attacks. This is intensifying the safe haven inflows into the Swiss franc in addition to the latest reports that European countries will have to mix the vaccine shots after the AstraZeneca vaccine was prohibited for the younger population – which would slow down the economic recovery in EU.
Expect sellers on downward corrections.
Next support to watch – 0.9223
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