FxAnalysis

USD/CHF may test 0.79 as Swiss franc gains strength. Sellers dominate on rallies.

The US Dollar (USD) couldn’t find its footing last week, dragging the US Dollar Index (DXY) down to the lower end of its monthly range near 97.40.

In quite turbulent past few days for the Pound Sterling, GBP/USD eventually managed to close the week with decent gains above the key 1.3500 figure, reversing at the same time two weekly retracements in a row.

The US Dollar (USD) accelerated its decline at the end of the week, weighed down by disheartening prints for US Nonfarm Payrolls in August (+22K jobs). The data did nothing but add further conviction to a most likely interest rate cut by the Federal Reserve at its September 17-18 meeting.

The EUR/USD pair closed a third consecutive week little changed, a handful of pips away from the 1.1700 mark. It kick-started September with a positive tone, peaking on Monday at 1.1736, but falling afterward to flirt with the 1.1600 mark.

Gold (XAU/USD) broke out of its four-month-old trading range and rallied to a new record-high near $3,600, fuelled by safe-haven flows and renewed US Dollar (USD) weakness.