USD/CHF pulls away from multi-month highs, trades around 0.9330
|- USD/CHF touched its highest level since July on Monday.
- US Dollar Index stays in the positive territory above 92.00.
- Investors remain focused on US T-bond yields in the absence of data releases.
The USD/CHF pair gained more than 200 pips last week and preserved its bullish momentum during the first half of the day on Monday. After touching its highest level since July at 0.9353, however, the pair retreated modestly and was last seen gaining 0.25% on the day at 0.9332.
DXY edges lower following earlier rally
The USD's market valuation continues to dominate USD/CHF's movements. The US Dollar Index, which tracks the greenback's performance against a basket of six major rivals, climbed to its best level in more than three months at 92.33. In the absence of significant fundamental drivers, rising US Treasury bond yields helped USD find demand.
Although the benchmark 10-year US T-bond yield rose more than 2% earlier in the day, it lost its traction ahead of the American session and is currently up 1% on the day while the DXY is rising 0.25% at 92.22.
Ahead of Wednesday's Consumer Price Index (CPI) data from the US, market participants are likely to continue to react to movements in the US T-bond yields.
Meanwhile, heightened hopes for the coronavirus relief bill to be signed into law later this week seems to be helping market sentiment improve and keeping the DXY's upside limited for the time being.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.