USD/CHF consolidates daily gains below 0.9900 mark
- Positive risk sentiment weighs on safe havens on Monday.
- US Dollar Index edges higher toward the 97.50 handle.
- The 10-year US Treasury bond yield adds nearly 3.5%.
The USD/CHF pair, which lost more than 80 pips last week, gained traction on Monday as the upbeat market mood made it tough for the CHF to find demand. After reaching a daily high of 0.9890 in the European morning, the pair has gone into a consolidation phase and was last seen trading at 0.9877, up 0.23% on a daily basis.
Focus shifts to US-China trade developments
Several headlines suggesting that the United States and China are closing in on concluding the phase-one of the trade deal provided a boost to the market sentiment at the start of the week. Reflecting the upbeat atmosphere, the 10-year US Treasury bond yield is up 3.4% on a daily basis.
Meanwhile, the US Dollar Index is making a technical correction after closing the previous week in the negative territory pressured by disappointing Purchasing Managers' Index (PMI) data releases and the Federal Reserve's neutral/dovish policy outlook. At the moment, the index is adding 0.25% on the day at 97.37.
During the early trading hours of the Asian session, Caixin Services PMI data from China will be watched closely by the market participants as a stronger-than-expected reading could ease concerns over an economic slowdown in China and allow risk-on flows to continue to dominate the markets.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
