The USD/CHF pair witnessed heavy selling on Wednesday and dropped to over a two-month low. The pair came under heavy selling pressure on and confirmed a fresh bearish breakdown through a nearly one-week-old consolidative trading range.
The downward trajectory dragged spot prices to the lowest level since April 21, with bears now awaiting sustained weakness below the key 0.9500 psychological mark.
The Swiss National bank had raised interest rates by 50 bps to curb soaring inflation, continued underpinning the Swiss franc. Apart from this, growing worries about a possible recession drove some haven flows towards the CHF and exerted additional downward pressure on the USD/CHF pair.
On the other hand, a fresh leg down in the US Treasury bond yields kept the bulls on US dollar bull on the defensive and failed to offer any support to the USD/CHF pair. With the latest leg down, spot prices have retreated over 500 pips from the vicinity of the YTD peak, around the 1.0050 region touched earlier this month.
