USD/CHF rises to fresh session highs above parity as DXY approaches 97

The USD/CHF pair rose above the parity mark in the early European trading hours and moved sideways for a couple of hours before gaining traction at the beginning of the NA session. The pair, which touched a session high 1.0015, was last up 0.25% on the day at 1.0012.

The broad-based USD strength on Tuesday seems to be providing the fuel to the pair's rise. After closing the last four trading days in the positive territory, the US Dollar Index preserved its bullish momentum and advanced to its highest level in two weeks 96.82. The selling pressure surrounding major European currencies such as the GBP and the EUR seems to be helping the greenback gather strength. Ahead of the non-manufacturing PMI data from the U.S., the DXY is up 0.15% on the day at 96.78. Meanwhile, the 10-year US T-bond yield is adding 0.8% on a daily basis, supporting the greenback and keeping the pair's bullish momentum intact. 

On the other hand, commenting on the Brexit uncertainty, the Swiss National Bank's (SNB) Vice-Chairman Fritz Zurbruegg said the Bank was prepared to take any measures if needed, hinting at possible intervention in the FX market and made it difficult for the CHF to recover its losses.

Later in the session, speeches by Minneapolis Fed President Kashkari and Richmond Fed President Barkin will be looked upon for fresh impetus.

Technical levels to consider