After rising to its strongest level in a month at 0.9243 on Monday, the USD/CHF pair lost its traction and closed in the negative territory on Tuesday. Ahead of mid-tier data releases from the US, USD/CHF remains on the back foot on Wednesday and was last seen losing 0.4% on the day at 0.9167.
Although the risk-averse market environment helped the greenback stay relatively resilient against its rivals on Tuesday, the sharp decline witnessed in the US Treasury bond yields weighed heavily on USD/CHF. The benchmark 10-year US T-bond yield fell more than 3% on Tuesday and was last seen losing 1% at 1.27%.
In the meantime, the US Dollar Index is staying in the negative territory below 92.50, not allowing USD/CHF to stage a rebound.
In the second half of the day, the US Federal Reserve will release the Industrial Production and Capacity Utilization data for August. Additionally, the Federal Reserve Bank of New York will publish the Empire State Manufacturing Survey. Nevertheless, investors are likely to ignore these figures and remain focused on the US T-bond yields.
USD/CHF: Poised to challenge much tougher resistance at the 0.9274 July high – Commerzbank.