USD/CHF trims early gains, back around mid-0.9900s

   •  USD fails to preserve early gains despite better-than-expected current account data.
   •  Resurgent US bond yields do little to revive the USD demand and lend any support.
   •  Risk-on mood weighs on CHF’s safe-haven appeal and might help limit deeper losses.

The USD/CHF pair surrendered a major part of its early gains and has now retreated around 35-40 pips from the mid-European session high level of 0.9983.

Despite better-than-expected US current account trade data and a goodish pickup in the US Treasury bond yields, the US Dollar struggled to preserve its daily gains and was seen as one of the key factors exerting some downward pressure on the major.

The downside, however, is likely to be cushioned amid a modest risk recovery, as depicted by the prevalent positive trading sentiment around equity markets, which tends to weigh on the Swiss Franc's safe-haven appeal. 

It would now be interesting to see if the pair is able to find any fresh buying interest at lower levels as market participants now look forward to the key central bankers' speeches at the ECB Forum on Central Banking, in Portugal. 

Technical levels to watch

Any subsequent retracement is likely to find support near the 0.9920 level and is followed by the 0.9900 handle, below which the pair could correct back to 0.9865-60 support area.

On the flip side, the 0.9970-80 region might continue to act as an immediate hurdle, which if cleared might assist the pair to aim back towards reclaiming the parity mark.