- 10-year US T-bond yield rises more than 2.5% on Monday.
- Strong data helps the greenback gather strength.
- US Dollar Index erases daily losses, rises above 97.20.
The USD/CHF pair spent a large portion of the day moving sideways below 0.9950 mark before starting to climb higher in the NA session. As of writing, the pair was trading at its daily high of 0.9983, gaining 0.3% on the day.
A sharp upsurge witnessed in the US Treasury bonds yield seems to be fueling the pair’s advance in the last couple of hours. After dropping to its lowest level since late 2017 at 2.34% last Wednesday, the yield on the 10-year T-bond staged a decisive rebound in the second half of the previous week and was able to preserve its momentum on Monday, adding more than 2.5% on a daily basis.
Moreover, the data published by the ISM showed that the manufacturing sector expanded at a more robust pace than expected in March with the headline PMI rising to 55.3 from 54.2 in February and beating the market estimate of 54.5.
Although the retail sales report, which showed a contraction of 0.2% in February, and the IHS Markit Manufacturing PMI disappointed on Monday, greenback didn’t have a difficult time erasing its daily losses supported by the ISM data and bond yields. At the moment, the US Dollar Index is posting small gains on the day at 97.22.
On Tuesday, inflation data from Switzerland and durable goods orders data from the U.S. will be looked upon for fresh impetus.
Technical levels to consider
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