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.

Eren Sengezer FXStreet

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 price	0.9059
Today Daily Change	-0.0032
Today Daily Change %	-0.35
Today daily open	0.9091

Trends
Daily SMA20	0.912
Daily SMA50	0.9235
Daily SMA100	0.9082
Daily SMA200	0.9083

Levels
Previous Daily High	0.9094
Previous Daily Low	0.903
Previous Weekly High	0.9165
Previous Weekly Low	0.9004
Previous Monthly High	0.9473
Previous Monthly Low	0.908
Daily Fibonacci 38.2%	0.907
Daily Fibonacci 61.8%	0.9054
Daily Pivot Point S1	0.9049
Daily Pivot Point S2	0.9008
Daily Pivot Point S3	0.8986
Daily Pivot Point R1	0.9113
Daily Pivot Point R2	0.9135
Daily Pivot Point R3	0.9177

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.

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