USD/CHF advances to multi-week highs above 0.99

• Broad-based USD strength int he early NA session boosts the pair.
• US T-bond yields extend gains to support the greenback.
• Wall Street turns positive after starting the day in the red.

The USD/CHF broke out of  its tight consolidation  channel in the early NA session and advanced to its highest level since December 27 at 0.9942, As of writing, the pair was trading a couple of pips below that level, adding 0.35% on a daily basis.

A fresh USD buying wave in the last hour seems to be behind the pair’s recent upsurge. After staying quiet near the 96 mark for the majority of the day, the US Dollar Index, which tracks the greenback against a basket of six major currencies, rose to a session high of 96.24 supported by the upbeat data and a modest increase in the US 10-year T-bond yields. At the moment, the DXY is up 0.08% on the day at 96.15.

Earlier in the session, the U.S. Bureau of Labor Statistics reported that weekly jobless claims edged down to 213K in the week ending January 11 and the Philly Fed Manufacturing Survey’s Business Conditions Index climbed  to 17 in January from 9.1 in December to beat the market expectation of 10.

On the other hand, after starting the day modestly lower, major equity indexes in the U.S. turned flat in the last hour to show that investors are not necessarily fleeing to safer assets and put the CHF under pressure.

Key technical levels