- The DXY remains above 93.00 even as US yields drift away from highs.
- USD / CHF is heading towards the highest close since July 16, 2020.
The USD/CHF it rose further after the start of the US session and peaked at 0.9438, the highest level since mid-July. The pair remains firm above 0.9400, poised to post the strongest close in eight months.
The main bullish driver for USD / CHF continues to be the US dollar and rising yields. The 10-year yield hit 1.77% on Tuesday, a one-year high, while the DXY rose above 93.00 for the first time since November. The dollar is particularly bullish against major European currencies.
US stocks fell. The Dow Jones lost 0.13% and the Nasdaq 0.35%. Economic data released Tuesday showed the Conference Board Consumer Sentiment Index rose to its highest level in a year at 109.7 in March, significantly above expectations of 96.9. Another report showed that home prices measured by the S&P CoreLogic Case Shiller Index rose 11.2% in January from a year earlier, the highest rate since 2006. On Friday, the non-farm payroll report will be released.
From a technical perspective, USD / CHF’s bullish tone remains intact even amid some overbought readings. A correction below 0.9375 could ease the bullish momentum. A consolidation above 0.9430 should point to more gains. The next strong barrier is seen at 0.9460.
Technical levels
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