USD/CHF drops to 0.9050 area as US T-bond yields slide
|- USD/CHF looks to snap a two-day winning streak.
- US Dollar Index falls into the negative territory in the American session.
- 10-year US T-bond yield is down nearly 2% on Thursday.
The USD/CHF pair closed the previous two trading days in the positive territory but lost its traction after failing to break above 0.9100. As of writing, the pair was down 0.35% on a daily basis at 0.9058.
Falling US T-bond yields weigh on USD
On Wednesday, the broad-based USD strength on the back of strong inflation data allowed USD/CHF to push higher. Additionally, rising US Treasury bond yields provided an additional boost to the pair. On Thursday, the benchmark 10-year US T-bond yield is down nearly 2% on the day, forcing USD/CHF to push lower. In the meantime, the US Dollar Index is posting modest daily losses at 90.67.
The data from the US showed on Thursday that the Producer Price Index (PPI) in April rose to 6.2% from 4.2%, compared to analysts' estimate of 5.9%. Additionally, the US Department of Labor reported that the weekly Initial Jobless Claims fell to 473,000 from 507,000. Nevertheless, these readings failed to trigger a noticeable market reaction.
There won't be any macroeconomic data releases from Switzerland on Friday. Retail Sales, Industrial Production and the University of Michigan's Consumer Sentiment Index will be featured in the US economic docket ahead of the weekend.
Technical levels to watch for
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