USD/CHF eases from tops, still well bid near 0.9900 handle
- Fading safe-haven demand weighs on the CHF and helped regain positive traction.
- Rebounding US bond yields underpins the USD and remained supportive of the move.
The USD/CHF pair built on its steady intraday up-move through the mid-European session and is currently placed at the top end of its daily trading range, just above the 0.9900 handle.
A combination of supporting factors assisted the pair to regain positive traction at the start of a new trading week, snapping two consecutive days of losing streak and reversing the post-NFP slide back closer to multi-month lows.
The US President Donald Trump suspended plans to impose tariffs on Mexico and boosted investors' appetite for perceived riskier assets, which was seen as one of the key factors weighing on the Swiss Franc's safe-haven status.
The risk-on mood was further reinforced by a solid rebound in the US Treasury bond yields, which underpinned the US Dollar and remained supportive of the pair's goodish intraday up-move beyond the 0.9900 round figure mark.
Despite the move, the pair remained well within a broader trading range held over the past four trading sessions and hence, it would be prudent to wait for a strong follow-through buying before positioning for any further up-move.
With the only scheduled release of JOLTS Job Openings, the US economic docket lacks any major market-moving economic data and hence, the USD price dynamics/broader market risk sentiment might continue to play an important role in influencing the pair's momentum through Monday's trading session.
Technical levels to watch