USD/CHF retreats to parity, eyes on Wall Street

• U S Dollar Index clings to gains above 96.50.
• Global stocks rise on Monday.
• 10-year US T-bond yield posts small losses despite positive sentiment.

The USD/CHF pair rose to a daily high of 1.0020 earlier in the European trading hours but failed to preserve its momentum. As of writing, the pair was trading near the critical parity mark, adding 0.1% on a daily basis.

After closing the previous three trading days in the positive territory, the US Dollar Index extended its rebound on Monday and touched its highest level in more than a week at 96.70. Although there were no fundamental drivers that may have seemingly boosted the demand for the greenback, the selling pressure surrounding the euro and other major currencies seem to be helping the USD strength. Later in the session, construction spending and the ISM-NY’s Business Conditions Index will be released from the U.S. Ahead of these data, the DXY is up 0.18% on the day at 96.62.

Meanwhile, heightened expectations of the U.S. and China reaching a trade agreement when President Trump and President Xi meet at the end of March on the latest  news headlines help major global equity indices post gains on Monday and make it difficult for traditional safe-havens to garb market participants’ attention. However, despite the risk-on mood, the 10-year US T-bond yield is losing 0.4% on the day to cap the pair’s upside.

Technical levels to consider