Search ForexCrunch
  • 10-year US Treasury bond yield rises sharply on Monday.
  • RÄ°sk-on flows make it hard for safe-haven CHF to find demand.
  • US Dollar Index moves sideways above the 98 mark.

Supported by recovering market sentiment on Monday, the USD/CHF pair climbed to its highest level since August 5 at 0.9822 earlier today but struggled to preserve its bullish momentum and retraced a portion of its daily gains. As of writing, the pair was still up 0.25% on the day at 0.9805.

Safe-havens lose interest  

Easing concerns over a prolonged US-China trade conflict following the Trump administration’s decision to delay the ban on Huawei for 90 days allowed risk-appetite to return to markets.  

After slumping to its lowest level in nearly three years last week, the 10-year US Treasury bond yield gained as much as 5% on the day before retreating slightly in the last hour. Confirming the risk-on atmosphere, all three main indexes of Wall Street started the day more than 1% higher.

Despite this shift in the market sentiment, the US Dollar Index stays relatively quiet near the 98.20 handle and continues to move sideways amid a lack of any macroeconomic data releases. On Tuesday, trade balance data from Switzerland will be looked upon for fresh catalysts. The US economic docket will be empty for the second straight day tomorrow and risk-perception is likely to continue to impact the pair’s action.

Technical levels to watch for