Markets are getting into more of a risk-off mood
The European cash equity market sees stocks marked lower at the start and we’re seeing the franc pick up some bids as a result. US equity futures have fallen down by 0.7% while Treasury yields are also slumping further, with 10-year yields now down 2.7 bps to 2.456%.
As a result, USD/CHF has fallen to a low of 1.0185 on the session, testing the confluence of support levels from the key hourly moving averages @ 1.0186. If sellers break below that and manage a break of the trendline support highlighted above, price momentum will turn more bearish in the near-term.
It’s all about risk flows right now in markets, as traders continue to wait on US-China trade developments for more clues on how to go about things ahead of the weekend.