USD / CHF stabilizes near 0.9130 after testing the 0.9100 region

• USD / CHF recovers initial losses before the American session.
• The DXY US Dollar Index remains in negative territory on Tuesday.
• The major Wall Street indices appear to be opening decidedly higher.

The USD/CHF it made a modest rebound on the back of the general strength of the USD on Monday and closed in positive territory. Although the pair has lost its traction and has fallen back to the 0.9100 zone during the European session on Tuesday, has finally recovered its initial losses and remains virtually unchanged on the day around the 0.9130 region.

Vaccine news continues to impact markets

With AstraZeneca announcing on Monday the maximum potential effectiveness of 90% for its coronavirus vaccine candidate, monetary flows of risk appetite began to dominate financial markets early in the week. The sharp rally seen in US Treasury yields has helped the dollar gain strength despite market risk appetite sentiment.

On Tuesday, major European stock indices are up around 1% to show that the market mood remains optimistic. On the other hand, the DXY US Dollar Index has failed to retain its bullish momentum and has returned to the 92.30 zone, falling 0.2% on the day. But nevertheless, CFH also struggles to find demand as a safe haven and allows USD / CHF to limit its losses.

During the American session, the Richmond Fed Manufacturing Index, the Conference Board Consumer Confidence Index and the House Price Index will feature on the US economic calendar. Meanwhile, S&P 500 futures are up 0.8%, suggesting that the DXY index is unlikely to rebound unless Treasury yields remain unchanged. For the moment, the benchmark 10-year bond remains unchanged at 0.86%.

USD / CHF technical levels