USD/CHF remains poised to extend gains beyond 0.9200 on USD strength
- USD/CHF moves higher on Tuesday in the Asian session.
- US dollar stays elevated despite falling US Treasury yields.
- Risk-on mood exerts pressure on the Swiss franc.
The appreciative move in the US dollar keeps USD/CHF mildly higher in the initial Asian trading hours. After reaching a high of 0.9239 on June 18, the pair touched the low of 0.9142 in the previous week.
At the time of writing, USD/CHF is trading at 0.9195, up 0.03% for the day.
The US dollar index trades at 91.82 with 0.05% gains, after falling near the 91.40 level on Monday. Investors continued to digest Fed’s dovish and a higher-than-expected Personal Consumption Expenditure Index (PCE) data in the previous week. The Federal Reserve Bank of Dallas Manufacturing Index fell to 31.1 in June on Monday.
The US 10-year benchmark yields read below 1.50% on mixed Fed’s official stance on inflation and interest rates.
It is worth noting that S&P Futures were trading at 4,290 with 0.23% gains.
On the other hand, the Swiss franc remains on the backfoot on improved market sentiment. However, the resurgence of corona cases and the comments from US President Joe Biden on Iran’s nuclear deal sour the market mood, which benefited the safe-haven asset franc.
The divergence in the monetary policy stance between the two economies is expected to influence the pair’s performance in the near future.
USD/CHF additional levels