- Improved sentiment helps the pair climb higher on Thursday.
- 10-year T-bond yield turns positive on the day.
- US Dollar Index posts small gains near 97.60.
The USD/CHF pair gained traction in the last couple of hours and came within a touching distance of the 1.0100 handle. As of writing, the pair was trading at 1.0090, adding 0.05% on a daily basis.
Despite the lack of headlines that could deescalate the geopolitical tensions, the market sentiment seems to have improved slightly on Thursday with major European equity indexes posting moderate gains on the day. Additionally, the 10-year US T-bond yield, which dropped to its lowest level since the last week of March, rebounded and turned positive on the day to confirm the risk-on atmosphere, making it difficult for the CHF to find demand. Furthermore, Wall Street seems to be set to open the day higher with the S&P 500 Futures rising around 0.3% today.
In the early American session, weekly jobless claims data and the housing starts/building permits figures from the U.S. will be looked upon for fresh impetus. Ahead of the data, the US Dollar Index is up 0.04% on the day at 97.60. There won’t be any other macroeconomic data releases in the remainder of the day and the market’s risk perception is likely to continue to drive the pair’s price action.
Technical levels to watch for