USD/CHF extends daily rally toward 1.0050 on broad USD strength

• US Dollar Index pushes higher to 97.
• US 10-year T-bond yield rises by more than 1% on Monday.
• Risk-on mood weighs on safe-havens.

Following the flash spike in the early Asian session,  the USD/CHF quickly reversed its gains, suggesting that the upsurge was most likely caused by a ‘fat-finger’. With the greenback gaining traction on Monday, the pair started to climb above the critical parity mark, and was last seen adding 0.5% on the day at 1.0050.

The selling pressure surrounding the major European currencies stays strong and allows the greenback to continue to outperform its rivals. After closing the previous week at its highest level in more than two weeks, the US Dollar Index advanced to its highest level since late December at 97.01. As of writing, the DXY was up 0.35% on a daily basis at 96.97.

The decisive rebound in the U.S. Treasury Bond yields  on Monday provides the primary boost to the greenback in the absence of important macroeconomic data releases. At the moment, the 10-year reference  is up 1.1% on a daily basis.  

Meanwhile, major equity indexes in the U.S. started the day modestly higher to further weigh on the CHF, which is usually seen as a safe-haven asset.

Technical levels to consider