USD/CHF stretches higher toward 0.9750 on upbeat sentiment, USD strength
- Wall Street's main indexes extend gains on easing US-Iran conflict.
- 10-year US Treasury bond yield adds nearly 2%.
- US Dollar Index advances to 98.30 area on Wednesday.
The USD/CHF pair preserved its bullish momentum during the American trading hours and advanced to its highest level in five days at 0.9740. As of writing, the pair was up 0.36% on the day at 0.9736.
Positive shift in sentiment lifts USD/CHF
After US President Trump confirmed that there were no casualties in Iran's missile strikes and noted that Iran was "standing down," risk flows returned to markets and made it difficult for safe-havens such as CHF find demand.
Additionally, the upbeat mood allowed the US T-bond yield to rise sharply and helped the greenback gather strength against its rivals. As of writing, the 10-year US Treasury bond yield was up 2% on the day and the US Dollar Index was adding 0.32% at 97.28. Reflecting the positive sentiment, the Nasdaq Composite and the Dow Jones Industrial Average are rising 0.9% and 0.75%, respectively.
Meanwhile, the ADP Employment Change in the US came in at 202,000 in December to beat the market expectation of 160,000 by a wide margin and supported the USD's rally.
On Thursday, Real Retail Sales and Foreign Currency Reserves data will be featured in the Swiss economic docket. In the second half of the day, weekly Jobless Claims will be released from the US.
Technical levels to watch for