The Swiss franc usually serves as refuge during market worries and December is typically a month for risk aversion.
USD/CHF has fallen in 15 of the past 22 Decembers, notably the December 2008 drop of 12%, according to EBS prices.
While USD/CHF's trend in December points to a market that has a tendency to fall, seasonal trends should not be considered in isolation, but when combined with other factors they can be a useful tool.
USD/CHF 14-week momentum is negative, reinforcing the overall bearish market structure.
Scope is for eventual losses through the 0.9289 Fibo, a 61.8% retrace of the 0.8759 to 1.0147 (2021-2022) EBS rise.
, dragged down by financials and energy stocks, as strong U.S. services activity data spurred fears that the Federal Reserve could stick to its aggressive rate-hike approach.
If risk aversion intensifies, expect funds to flow into the safe-haven franc, that would increase the odds that USD/CHF closes in negative territory this month.
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