|

USD/CHF nearing the 0.9800 handle amid the USD long trade

  • The US bond yields sent the US dollar higher with the 10-year benchmark at highs not seen since 2014. 
  • The USD/CHF is nearing its 100-period simple moving average at 0.9790 on the weekly chart.

The USD/CHF is trading at around 0.9771 up 0.25% as the pair is underpinned by strong US dollar demand stemming from rising US bond yields. 

The US Dollar Index, which gauge the greenback against a basket of currencies is only a few ticks away from March 1 high at the 90.93 level. The index has gained a strong bullish momentum in the last five days of trading helped by the bull trend in the US Treasury yields with the 10-year benchmark close to 3.00% which is a level not seen since 2014. The US fiscal policy boost along with expectations of more rate hikes by the Federal Reserve Bank are behind the up move in the bond yields according to analysts at Danske Bank.

On the broader picture, the Swiss franc remains weak against the greenback as the Swiss National Bank (SNB) is not expected to raise interest rates in the foreseeable future with no big surprises expected there. President Thomas Jordan recently talked to Bloomberg. More details here.

Earlier on Monday, the housing data came better than expected, advancing 1.1% over the month in March while the Manufacturing Purchasing Managers Index (PMI) rose to 56.5, the highest level in the last 43 months. On the other hand, the manufacturing activity in Chicago regional area fell to 0.10 in March, coming out below expectations. However, it is important to point out that the tier-two data were largely overshadowed by the jump in US bond treasury yields. 

USD/CHF daily chart

The trend is bullish. Resistance is seen at 0.9846 swing high and at 0.9978 swing high while support is seen at 0.9653 swing high and at 0.9533 swing low

Author

Flavio Tosti

Flavio Tosti

Independent Analyst

 

More from Flavio Tosti
Share:

Editor's Picks

EUR/USD retakes 1.1800 on renewed USD weakness

EUR/USD gains ground after three days of losses, re-attempting 1.1800in the European trading hours on Thursday. The US Dollar sees fresh selling interest across the board, despite hawkish Fed Minutes, as the market mood improves and supports the pair. US Jobless Claims data, Fedspeak and geopolitics remain in focus. 

GBP/USD recovers above 1.3500 amid better mood

GBP/USD finds fresh demand and rises back above 1.3500 in the European session on Thursday. Improving risk sentiment and renewed US Dollar weakness are helping the pair recover ground ahead of mid-tier US data releases and Fedspeak. 

Gold clings to gains above $5,000 amid safe-haven flows and Fed rate cut bets

Gold sticks to modest intraday gains, above the $5,000 psychological mark, through the first half of the European session, though it lacks bullish conviction amid mixed cues. The third round of US-mediated negotiations between Ukraine and Russia concluded in Geneva on Wednesday without any major breakthrough.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.