USD/CHF dives to levels near 0.9100 with US elections in focus

• US dollar dives from 0.9205 to daily lows near 0.9100.
• The dollar tumbles with the market pricing in a Democrat victory.

The US dollar has given away on Tuesday half of the ground taken over the last six days, hammered by a recovery on risk appetite. The pair has retreated to the low range of 0.9100, after hitting one-month highs above 0.9200 on Monday.

US dollar tumbles on hopes of a Biden’s victory

The greenback has lost nearly 0.8% so far today, undermined by a broad-based USD weakness amid the risk-on sentiment. Equity markets have posted solid advances on Tuesday with the investors betting on a Democrat landslide that would help to unlock a large stimulus program and hurt demand for the US dollar.

Market concerns about the impact of a second COVID-19 wave have been sidelined with the main focus to the US elections. Wall Street has echoed the positive sentiment with the  Dow Jones 2.06% up, the Nasdaq Composite Index appreciating 1.85% and the S&P Index 1.85% above the opening level.

On this backdrop, the US dollar has depreciated against its main peers. The US Dollar Index retreating 0.7% to 93.29 after having peaked on Monday at 94.28, its highest level since late September.

Technical levels to watch