USD/CHF attempts to test monthly highs above 0.9200 amid broad-based USD strength
- USD/CHF remains quiet in the Asian session on Wednesday.
- Soaring US Treasury yields push the US dollar higher above 92.50.
- The Swiss Franc gains on its safe-haven appeal, upbeat job data.
After testing the weekly high near 0.9200 in almost 70-pips movement, USD/CHF consolidates gains in the Asian session on Wednesday.
At the time of writing, USD/CHF is trading at 0.9196, down 0.01% for the day.
The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, trades above 92.50 with 0.55% gains.
The US 10-year benchmark yields rose to 1.37% amid concerns about the rising coronavirus cases and their impact on the economic recovery. Higher US bond yields fuel the demand for the greenback.
Meantime, as per CNN, there is a hardship for the Democratic party led stimulus plan as it reaches the house. As per the reports, “ House Republicans could face pressure to vote against a bipartisan infrastructure package when they return to Washington later this month”.
It is worth noting that, S&P 500 Futures were trading at 4,520 with 0.34% losses.
On the other hand, the Swiss franc holds some ground on its safe-haven appeal amid reduced risk appetite.
On the data front, the Unemployment Rate fell lower to 2.7% in August, the lowest since February 2020 and below the market consensus of 2.8%. The readings capped the downside for the franc.
In addition to that, as per LiveSquak reports Swiss National Bank (SNB) governing board member, Andrea Maechler remained optimistic about robust GDP growth for Switzerland in 2021. The comments helped the Swiss Franc to limit losses.
As for now, traders wait for the US JOLTS job Openings to gauge market sentiment.
USD/CHF additional levels