USD/CHF manages to hold onto strong daily gains

The US dollar has recovered momentum during the US session as market sentiment deteriorates. The Swiss Franc falls across the board, so, the EUR/CHF pair rises toward 0.9900.

The pair has best performance in weeks, gains 1.40%. The USD/CHF pair is rising sharply on Tuesday amid a stronger US dollar across the board and also amid a slide of the Swiss Franc. The pair peaked on European hours at 0.9398, the highest level since December 8 and then pulled back finding support at 0.9315. It is moving back toward daily highs as Wall Street extend losses. 

The pair is back above the 20-day Simple Moving Average (now support at 0.9305) for the first time since early November. The recovery takes place after USD/CHF held above 0.9200. Above 0.9400, the next barrier is seen at 0.9430.

After a positive opening, the Dow Jones is falling by 0.53% and the Nasdaq drops by more than 1%. The deterioration in market sentiment is boosting the US Dollar after a previous correction. The DXY peaked at 104.85, and the pulled back to 104.15; as of writing it is at 104.65 up 1.15% for the day.

At the same time, US yields are also moving to the upside reversing an initial decline. The US 10-year yield stands at 3.78% and the two-year is back above 4.40%.

The Swiss Franc is among the worst performers amid a rally in Swiss bonds. The Switzerland 10-year bond yield is falling by 8.50% at 1.46%, moving away from the multi-year high it hit last week at 1.62%.