USD / CHF still on track to post the highest daily close in three weeks near 0.9050

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  • USD / CHF reached its highest level since May 14 on Thursday.
  • The US Dollar Index posts strong daily gains after upbeat US data.
  • The yield on the 10-year US Treasury is increasing by more than 2%.

The pair USD/CHF broke its two-week range on Thursday and reached its highest level since May 14 at 0.9052 before entering a consolidation phase at the end of the US session At time of writing, the pair was up 0.78%. on the day at 0.9046.

US Treasury Yields Jump After NFP Report

Widespread USD strength in the second half of the day fueled the USD / CHF rally. The Automatic Data Processing Research Institute (ADP) reported Thursday that private sector employment in the US increased by 978,000 in May, compared with analysts’ estimate of 650,000. Additionally, weekly data released by the US Department of Labor showed that Initial Unemployment Claims dropped to 385,000 from 405,000. Supported by upbeat data, the US Dollar Index (DXY) started to rise.

Later in the session, the Institute for Supply Management (ISM) announced that the services PMI improved to new all-time highs with 64 in May from 62.7 in April. More importantly, the price paid index component of the PMI report jumped to its strongest level in nearly 15 years at 80.6, reviving concerns about inflation.

Yields on US Treasuries rose and provided an additional boost to the USD. For now, the benchmark 10-year US Treasury yield is up 2.25% on the day and the DXY rose 0.67% to 90.50.

On Friday, the US Bureau of Labor Statistics will release the May jobs report. Investors expect Non-Farm Payrolls (NFP) to rise by 644,000 after a disappointing April figure of 266,000.

Technical levels


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