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  • USD/CHF is moving sideways near 0.8900 on Tuesday.
  • US Dollar Index stays flat on the day near 90.50.
  • 10-year US T-bond yield is rising for the sixth straight day.

The USD/CHF pair gained nearly 50 pips on Monday and climbed to a 10-day high of 0.8921. With the financial markets turning subdued in the absence of significant fundamental drivers on Tuesday, the pair is trading flat near 0.8900.

USD consolidates gains on Tuesday

The sharp upsurge witnessed in the US Dollar Index (DXY) at the start of the week allowed USD/CHF to gather bullish momentum. The ongoing rally in the US Treasury bond yields helped the greenback outperform its rivals and the DXY advanced to a multi-week high of 90.72.

Earlier in the session, the data from the revealed that the NFIB Business Optimism Index in December declined to 95.9 and fell short of the market expectation of 102.8. Nevertheless, the DXY showed no reaction to this report and extended its sideways grind near mid-90.00s. Later in the day, the IBD/TIPP Economic Optimism Index and JOLTS Job Openings data will be looked upon for fresh impetus.

In the meantime, the 10-year US T-bond yield is up more than 1% on Tuesday, suggesting that the USD could gather additional strength if yields start pushing higher in the second half of the day.

Technical levels to watch for