USD/CHF hangs near 0.9220 amid lower US Treasury yields
- USD/CHF remains quiet in the Asian session on Thursday.
- US 10-year benchmark Treasury yields retreat from monthly highs on Wednesday.
- US Dollar Index remains strong above 92.70 amid mixed Fed’s official’s view.
The USD/CHF pair remains muted in the initial Asian trading hours on Thursday. After testing monthly highs above 0.9230 in the overnight session, USD/CHF retreated toward 0.9220.
At the time of writing, USD/CHF is trading at 0.9219, down 0.02% for the day.
The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, trades above 92.70 with 0.22% gains.
The US 10-year benchmark yields fell to 1.33% with 0.14% losses amid concerns about the rising coronavirus cases and their impact on the economic recovery.
In the meantime, the Federal Reserve’s Beige Book revealed that the economic growth lost its pace from early July through August. The mixed economic data also portrayed the bumpy ride toward economic recovery.
Dallas Fed President Robert Kaplan remained cautious on the COVID-19 resurgence and its impact on the economy. He downwardly revised the Q3 Gross Domestic Product (GDP). St. Louis Fed President James Bullard reaffirmed his stance that Fed should move forward with a plan to reduce its bond-purchase program, despite a slowdown in job growth.
It is worth noting that, S&P 500 Futures were trading at 4,514 with 0.13% losses.
On the other hand, the Swiss franc holds some ground on its safe-haven appeal amid reduced risk appetite.
The Swiss National Bank (SNB) Vice Chairman Fritz Zurbruegg said the Swiss franc is strong even after recent dips. He further quoted that SNB could increase the size of its balance sheet if needed.
As for now, traders wait for the European Central Bank (ECB) interest rate decision, and US Initial Jobless Claims to gain fresh trading impetus.
USD/CHF additional levels