USD/CHF pulls away from daily highs, hold above 0.9000
|- USD/CHF reached a daily high of 0.9025 on Wednesday.
- US Dollar Index continues to push higher after closing in the green on Tuesday.
- Federal Reserve will publish its Beige Book 1800 GMT.
The USD/CHF pair stayed relatively quiet at the start of the week and posted small losses on Monday and Tuesday before gaining traction on Wednesday. After reaching a fresh daily high of 0.9025, however, the pair erased a portion of its daily gains and was last seen rising 0.42% at 0.9006.
DXY stays above 90.00 as focus shifts to Fed's Beige Book
The renewed USD strength helped USD/CHF push higher during the European session. The ISM's Manufacturing PMI report showed on Tuesday and input prices rose sharply in the manufacturing sector in May and triggered a rally in the US Treasury bond yields. With the benchmark 10-year US T-bond yield rising 2% on Tuesday, the US Dollar Index (DXY) staged a decisive recovery and preserved its bullish momentum on Wednesday. At the moment, the DXY is up 0.16% at 90.06.
Meanwhile, Swiss National Bank Vice Chairman Fritz Zurbruegg said on Tuesday that they welcome the recent weakening in the CHF but reiterated that the currency is still "highly valued."
Later in the day, the Federal Reserve its Beige Book. Market participants will look for fresh clues regarding inflation expectations in the 12 Fed districts.
Technical levels to watch for
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