- USD / CHF touched its highest level since July on Monday.
- The US Dollar Index remains in positive territory above 92.00.
- Investors remain focused on US Treasury yields in the absence of data releases.
The pair USD/CHF it gained over 200 pips last week and maintained bullish momentum for the first half of the day on Monday. However, after touching its highest level since July at 0.9353, the pair pulled back modestly and was last seen gaining 0.25% on the day at 0.9332.
DXY descends after an initial rally
The USD market valuation continues to dominate the USD / CHF movements. The US dollar index, which tracks the dollar’s performance against a basket of six big rivals, rose to its best in more than three months at 92.33. In the absence of important fundamentals, rising US Treasury yields helped the USD find demand.
Although the benchmark 10-year US Treasury yield was up more than 2% earlier in the day, it lost traction before the US session and is currently up 1% on the day, while the DXY is up 0.25% at 92.22.
Ahead of Wednesday’s US Consumer Price Index (CPI) data, market participants are likely to continue reacting to movements in US Treasury yields.
Meanwhile, the highest hopes that the coronavirus relief bill will be enacted later this week appears to be helping improve market sentiment and keeping DXY’s lead limited for the time being.
Technical levels
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