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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

USD/CHF

Overview
Today last price0.9059
Today Daily Change-0.0032
Today Daily Change %-0.35
Today daily open0.9091
 
Trends
Daily SMA200.912
Daily SMA500.9235
Daily SMA1000.9082
Daily SMA2000.9083
 
Levels
Previous Daily High0.9094
Previous Daily Low0.903
Previous Weekly High0.9165
Previous Weekly Low0.9004
Previous Monthly High0.9473
Previous Monthly Low0.908
Daily Fibonacci 38.2%0.907
Daily Fibonacci 61.8%0.9054
Daily Pivot Point S10.9049
Daily Pivot Point S20.9008
Daily Pivot Point S30.8986
Daily Pivot Point R10.9113
Daily Pivot Point R20.9135
Daily Pivot Point R30.9177

Author

Eren Sengezer

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.

More from Eren Sengezer
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