USD/CHF retreats from 5-month highs near 0.9330 as US Treasury yields wobble

USD/CHF trades modestly higher on Tuesday in the early Asian trading hours.
US 10-year benchmark Treasury yields fell sharply on concerns of potential spillover from China’s Evergrande.
Pre-Fed market volatility, sour-risk sentiment pushes safer Swiss Franc higher.

Rekha Chauhan Independent Analyst

The USD/CHF pair remains muted in the initial Asian trading hours on Tuesday. After testing monthly highs above 0.9300 in the overnight session, USD/CHF retreated on a corrective pullback. At the time of writing, USD/CHF is trading at 0.9274, down 0.01% for the day.

The US 10-year benchmark yields trade near 1.31% with 0.26% gains amid concerns about China’s second-largest property developer, Evergrande default and the risk of spreading shockwaves beyond China.

The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, turns mildly negative near 93.20 with 0.02% losses.

Investors remain anxious ahead of the FOMC two-day policy meeting on Wednesday. Fed’s officials are expected to signal a start to scaling down the monthly asset purchase program.

It is worth noting that, S&P 500 Futures is trading at 4,357.33, down 1.70% losses. On the other hand, the Swiss Franc holds some ground on its safe-haven appeal amid reduced risk appetite. Furthermore, the recent foreign investment flows into Swiss stocks also kept Swiss currency on the higher side.

Meanwhile, the Swiss government has lowered the growth forecast for the economy by 3.2% this year. As per the State Secretariat for Economic Affairs (SECO) a less vigorous global recovery, supply-chain bottlenecks and tightened coronavirus measures remained the major reasons behind the pull-down in the growth projections estimates.

As for now, traders wait for the Swiss Balance of Trade, US Current Account, Housing Starts and Building Permits to gain fresh trading impetus.

USD/CHF additional levels

Overview
Today last price	0.9275
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.9275

Trends
Daily SMA20	0.9186
Daily SMA50	0.9165
Daily SMA100	0.9121
Daily SMA200	0.9094

Levels
Previous Daily High	0.9333
Previous Daily Low	0.9271
Previous Weekly High	0.9325
Previous Weekly Low	0.9164
Previous Monthly High	0.9242
Previous Monthly Low	0.9019
Daily Fibonacci 38.2%	0.9295
Daily Fibonacci 61.8%	0.9309
Daily Pivot Point S1	0.9253
Daily Pivot Point S2	0.9231
Daily Pivot Point S3	0.9191
Daily Pivot Point R1	0.9315
Daily Pivot Point R2	0.9355
Daily Pivot Point R3	0.9377

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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