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  • USD/CHF continues to push higher following Monday’s rally.
  • US Dollar Index climbs to daily tops near 93.00.
  • 10-year US Treasury bond yield is rising for the third straight day.

After slumping to its lowest level since January 2015 below 0.9000, the USD/CHF pair staged an impressive recovery and gained more than 100 pips on Monday. With the greenback preserving its strength on Tuesday, the pair continues to push higher and was last seen gaining 0.46% on the day at 0.9175.

Rising US T-bond yields support USD

The risk-on market atmosphere at the start of the week made it difficult for the CHF to find demand. Pfizer announced on Monday that the coronavirus vaccine it has been developing with BioNTech was “more than 99% effective” and allowed risk flows to dominate the financial markets.

Although the initial market reaction made it difficult for the USD to outperform its rivals, surging US Treasury bond yields in the second half of the day helped the US Dollar Index (DXY) gain traction. Following last week’s slump, the DXY rose 0.65% on Monday and is currently up 0.13% at 0.9295.

The data from the US revealed on Tuesday that the NFIB Business Optimism Index stayed unchanged at 104 in October. Later in the session, the JOLTS Job Openings will be looked upon for fresh catalysts.

In the meantime, the 10-year US Treasury bond yield, which gained nearly 15% on Monday, is rising for the third straight trading day on Tuesday, helping the USD stay resilient against its rivals.

Technical levels to watch for