USD/CHF stays below 0.9250 amid higher US Treasury yields
|- USD/CHF edges lower, erasing the previous session’s gains.
- Higher US Treasury yields underpin the demand for the US dollar.
- Fed tapering and higher inflationary concerns influence traders' decisions.
USD/CHF accumulated mild losses on Tuesday in the early Asian session. After testing the high near 0.9280 in the US session, the pair traded lower to close below 0.9250. At the time of writing, USD/CHF is trading at 0.9233, down 0.05% for the day.
The US benchmark 10-year Treasury yields trade at 1.59% with 0.88% gains. The greenback follows the US bond yields and remains steady near 94.00. Investors reacted to the prospects of higher interest rates by selling across the board global government bonds. Higher energy prices along with the existing supply-chain bottlenecks and labor shortages check traders nerves.
On the other hand, the Swiss franc loses momentum as traders turn to the riskier asset in the anticipation of higher returns. It is worth noting that, S&P 500 Futures is trading at 4,478, up 0.01% for the day.
As for now, traders are looking for the US Housing Starts, and Building Permits data to take fresh trading insight.
USD/CHF additional levels
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