USD / CHF rises above 0.8950 on the strength of the dollar

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  • The USD / CHF gained momentum during the European session and moved to positive territory.
  • A modest pickup in USD demand provided support for the pair.
  • After a sharp decline, Treasury yields stabilized.

The USD / CHF bounced more than 25 pips from daily lows and climbed to 0.8967, marking a new high for the day. Previously, the pair managed to find some support near the 0.8930 region.

A recovery in the dollar, coupled with a modest rise in stocks, helped support USD / CHF, which reversed the trend after approaching its lows on Wednesday.

The Yields of Te bondsserum they have stabilized in the last few hours. The 10-year rate, for now, has stopped falling, and remains at around 1.43%. Should it break down, further weakness in the dollar could be expected.

After the inflation data, now the focus of the market, is moving to the meeting of the Federal Reserve in the next week. There the Fed has the possibility to continue with the same temporary inflation discourse or to toughen its discourse. On Friday the relevant economic data will be the consumer confidence data from the University of Michigan.

From a technical point of view, the 0.8970 area is a strong resistance and if a confirmation is given above, the dollar could gain momentum and rise to 0.8990 initially. As long as it is below that level, downward pressures are expected to dominate.

Technical levels

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