USD/CHF spikes to session tops, around mid-0.9900s

   •  A sudden pickup in the USD demand helps regain positive traction.
   •  Cautious mood/weaker US bond yields might cap additional gains.

The USD/CHF pair finally broke out of its Asian session consolidation phase and spiked to fresh session tops, surpassing the overnight swing high.

With investors looking past Wednesday’s ultra-dovish FOMC statement, the US Dollar managed to stage a goodish bounce from the lowest level since early February on Thursday. 

The USD uptick extended on the last trading day of the week, rather picked up the pace and was seen as one of the key factors behind the pair’s latest leg of a sudden upsurge in the last hour or so.

The intraday positive move seemed rather unaffected by the prevalent cautious mood, reinforced by weaker US Treasury bond yields and which tends to underpin the Swiss Franc’s safe-haven demand.

The recovery move, however, lacked any obvious catalyst and hence, remains to be seen if the recovery is backed by any genuine buying or is solely led by some near-term short-covering.

There isn’t any major market-moving economic data due for release from the US and hence, the broader market risk-sentiment/USD price dynamics might continue to influence the pair’s momentum.

Technical levels to watch