USD/CHF consolidated in a range, just below 0.9000 mark
|- A combination of diverging forces failed to provide any meaningful impetus to the USD/CHF.
- A goodish pickup in the US bond yields underpinned the USD and extended some support.
- The prevalent cautious mood benefitted the safe-haven CHF and capped gains for the pair.
The USD/CHF pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the first half of the European session. The pair was last seen trading just below the key 0.9000 psychological mark, nearly unchanged for the day.
Following an early dip to the 0.8975 region, the pair gained some traction on the first day of a new trading week and was supported by a modest US dollar uptick. As investors looked past Friday's mixed US jobs report, a goodish pickup in the US Treasury bond yields assisted the greenback to regain some positive traction.
A softer headline NFP print, to a larger extent, tempered expectations that the Fed would begin its bond-purchase program sooner rather than later. That said, worries about rising inflationary pressure acted as a tailwind for the US bond yields. This, in turn, was seen as a key factor that extended some support to the USD/CHF pair.
Bulls, however, struggled to capitalize on the move further beyond the 0.9000 mark. The prevalent cautious mood, as depicted by a subdued action in the equity markets, benefitted the safe-haven Swiss franc and capped the upside for the USD/CHF pair. This warrants some caution before positioning for any further gains.
There isn't any major market-moving economic data due for release from the US on Monday. Hence, the US bond yields will play a key role in influencing the USD price dynamics. Apart from this, the broader market risk sentiment might further provide some impetus to the USD/CHF pair and allow traders to grab short-term opportunities.
Technical levels to watch
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