- USD/CHF has managed to recover from the daily lows in the European session.
- US Dollar Index fell below 91.80 and is recovering earlier losses.
- A modest pickup in the US bond yields underpins the USD.
The USD/CHF pair is recovering swiftly from the multi-month lows near 0.9190 in the European trading hours. A rebound in the US Treasury yields lifts the demand for the US dollar.
At the time of writing, USD/CHF is trading at 0.9211, up 0.03%.
The pair has managed to gain some positive traction amid a sudden pick up in the US Treasury yields on Wednesday. The US 10-year yields fell from 1.70% to 1.62% in the New York session thus, sending the US dollar into a corrective mode. The fall coincides with the release of US consumer inflation figures which failed to ignite the market mood.
On the other hand, the State Secretariat for Economic Affairs (SECO) published the results of its weekly economic activity index (WEA) on Tuesday reported that the Swiss economy temporarily reached the pre-crisis levels while taking the fourth quarter of 2019 as the benchmark. This, in turn, has boosted the safe-haven appeal of the Swiss franc and is attracting inflow to the currency.
As for the now, the dynamics around the US dollar, ahead of Fed Chair Jerome Powell’s speech later in the day, will continue to influence the pair’s price.
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