USD/CHF soars to 0.9630 as dollar jumps on US inflation numbers

The USD/CHF pair rose sharply from the lowest level in four weeks to the highest since Friday following the release of US inflation data. The pair climbed from 0.9477 to 0.9632. It is hovering around 0.9600/10, having the best day in weeks.

The US dollar dropped during the previous days amid expectations of a decline in the August CPI, but the numbers showed a different story. The CPI rose 0.1% in August and reinforced expectations of an aggressive Federal Reserve boosting the dollar and triggering a Treasury sell-off.


The US 10-year yield jumped to 3.47%, reaching the highest level since June and the 2-year yield rose to 3.74%, a fresh cycle high. The DXY rebounded from weekly lows under 108.00 to 109.55; it is up by more than 1%.

Despite the sharp slide versus the dollar, the Swiss franc rose against the euro and the pound amid risk aversion. The EUR/CHF trades at 0.9610, the lowest since late August, while GBP/CHF is at historic lows at 1.1070.