- USD/CHF came under modest pressure in early American session.
- Falling US Treasury bond yields weigh on USD.
- Wall Street’s main indexes look to open modestly lower.
After spending the majority of the day in a tight range below 0.9400, the USD/CAD came under modest bearish pressure in the early American session and touched its lowest level in two weeks at 0.9350. As of writing, the pair was down 0.11% on a daily basis at 0.9355.
DXY returns to 92.50 area
Although the greenback seems to be having a difficult time preserving its earlier strength, USD/CHF remains on the back foot due to its positive correlation with the US Treasury bond yields. Currently, the benchmark 10-year US T-bond yield is losing 1.03% at 1.688% and the US Dollar Index, which touched a daily high of 92.78, is unchanged on the day at 92.56.
Later in the session, the IBD/TIPP Economic Optimism Index and JOLTS Job Openings will be featured in the US economic docket but these data are unlikely to trigger a significant market reaction.
In the meantime, the S&P 500 Futures are down 0.2% as we close in on the opening bell. If Wall Street’s main indexes fall sharply following Monday’s impressive rally, the greenback could start outperforming its rivals and pave the way for a rebound in USD/CHF.
Technical levels to watch for
Share
