USD/CHF invigorates multi-month tops amid sustained USD buying
- USD/CHF cut out of a two-day-old trading range and refreshed multi-month tops on Tuesday.
- The optimistic US economic outlook, rising US bond yields continued underpinning the greenback.
- A positive risk tone registered on the safe-haven CHF and provided an additional boost to the pair.
The USD buying remained unabated through the first half of the European session and pushed the USD/CHF pair to fresh of the multi-month tops, around the 0.9420-25 region in the last hour.
A mixture of factors assisted the pair to catch some fresh bids on Tuesday and finally broke out of a two-day-old narrow trading band. The upbeat outlook for the US economy remained supportive of the prevalent bullish sentiment around the US dollar. Apart from this form, a generally positive risk tone undermined demand for the safe-haven Swiss franc and provided and an additional boost to the USD/CHF pair.
Investors continued optimistic about the prospects for a nearly faster US economic recovery from the pandemic. This, along with a fresh leg up in the US Treasury bond yields, further impressed the government bond moved past the 1.75% threshold and jumped to the highest level since January 2020 in the last hour, up over 0.05 bps for the day.
Meanwhile, the latest leg of a sudden spike over the past hour or so could further be connected to some technical buying on a sustained move beyond the 0.9400 round-figure marks. With the latest leg up, the USD/CHF pair has confirmed a fresh bullish breakout and now seems poised to prolong its recent bullish trajectory. Market participants now look forward to the US economic docket, highlighting the announcements of the Conference Index. Apart from this, the US bond yields will influence the USD. Traders might further take cues from the broader market risk sentiment to grab some events around the USD/CHF pair.