- USD/CHF stays flat on Wednesday in the Asian session.
- Uptick in US Treasury yields underpins the demand for the US dollar.
- Swiss franc gains on market risk sentiment.
The USD/CHF remains muted in the Asian trading hours. The pair confides in a very narrow trading band with no meaningful traction.
At the time of writing, USD/CHF trades at 0.8968, up 0.02% for the day.
The US Dollar Index remains a little unchanged and is hovering around the 90 level with 0.03% losses for the day. The US 10 year benchmark yields held steady at 1.53%, which provides some lower ground for the greenback.
The data released on Tuesday sent the US Treasury yields to their lowest level in more than a month, which showed small business confidence declined for the first time this year.
Meanwhile,the US Senate voted 68-32 to approve a sweeping $190b package of legislation aimed to compete with Chinese technology. The ” supply chain trade strike force” would look out specific violations that contributed to the bottlenecks in supply chains that could be addressed with tariffs or other remedies. Investors turned cautious on the fear that market sentiment could sour and remained invested in the US dollar.
On the other hand, the Swiss Franc remains grounded on better unemployment data, which stood at 3.1% in May from the previous 3.3%. The Swiss labor market continued to tighten in May on improved economic conditions as the country continued to reopen. The inflation rate is still substantially below the Swiss National Bank (SNB) target of 2%, which means the central bank would continue to adhere to its ultra accommodative monetary policy.
In the absence of any major economic releases, the market participants are keenly awaiting for the US Consumer Price Index (CPI) data to read the market sentiment.
USD/CHF Additional Levels
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