USD/CHF extends rebound from multi-year lows, trades above 0.9200
- USD/CHF is rising for the second straight day.
- Rising T-bond yields help USD gather strength on Monday.
- ISM Manufacturing PMI in US came in better than expected in July.
The USD/CHF pair slumped tp its lowest level since early 2015 at 0.9056 on Friday but staged a decisive rebound to close the day in the positive territory at 0.9130. On Monday, the pair preserved its bullish momentum and climbed to a 10-day high of 0.9241 in the early trading hours of the American session before retreating modestly. As of writing, USD/CHF was up 0.88% on the day at 0.9208.
DXY extends recovery
The USD's market valuation continues to drive USD/CHF's movements. Last week, the sharp drop witnessed in the US T-bond yields caused the US Dollar Index (DXY) to suffer heavy losses. However, the 10-year US T-bond yield is up nearly 5% on Monday, helping the greenback outperform its rivals. The DXY, which rose 0.5% on Friday, was last seen gaining 0.25% on the day at 93.70.
Earlier in the day, the ISM Manufacturing PMI for the US arrived at 54.2 in July to reveal expansion in the manufacturing sector for the second straight month. This reading beat the market expectation of 53.6 and allowed the upbeat market mood to remain intact.
Meanwhile, the only data from Switzerland showed that the Consumer Price Index (CPI) in July rose from -1.3% to -0.9% on a yearly basis but was largely ignored by the market participants.
Technical levels to watch for
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.
