• A goodish pickup in the US bond yields helped the USD to recover early lost ground.
• Stronger US economic data provided an additional boost and remained supportive.
• Risk-off mood/reviving safe-haven demand might keep a lid on any further up-move.
The USD/CHF pair reversed the mid-European session dip to 0.9920 and spiked to fresh two-month tops in the last hour.
Against the backdrop of a hawkish assessment of the latest FOMC meeting minutes, a goodish pickup in the US Treasury bond yields helped the greeenback to recover early lost ground.
The US Dollar got an additional boost following better than expected US economic data - initial weekly jobless claims and Philly Fed manufacturing index, which further collaborated to the pair's sudden upsurge witnessed over the past couple of hours.
Further gains, however, are likely to remain capped amid the prevalent risk-off mood, as depicted by a negative tone around equity markets and which tends to underpin the Swiss Franc's safe-haven appeal.
Meanwhile, the price action indicates that the pair might be able to make it through the 0.9980 supply zone, which if cleared should support prospects for an extension of the ongoing positive momentum.
Technical levels to watch
A follow-through up-move beyond the parity mark is likely to get extended towards the 1.0025 resistance before the pair eventually aims to test its next major hurdle near mid-1.0000s.
On the flip side, the 0.9925-20 region now becomes an immediate support to defend, which if broken might accelerate the fall back towards 100-day SMA support near the 0.9865-60 region.
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