USD/CHF consolidates daily gains above 0.9300 as focus shifts to mid-tier US data
- USD/CHF climbs above 0.9300 on Friday, erases Thursday's losses.
- Broad-based USD strength fuels USD/CHF's climb ahead of US data.
- Recovering US Treasury bond yields support US Dollar Index.
After losing more than 50 pips and closing deep in the negative territory on Thursday, the USD/CHF pair regained its traction and advanced to a daily high of 0.9322 on Friday. As of writing, the pair was up 0.66% on the day at 0.9303.
USD outperforms its rivals on the back of rising bond yields
The US Treasury bond yields continue to impact the USD's market valuation strongly ahead of the weekend. Following the 10-year and the 30-year note auctions earlier in the week, the T-bond yields edged lower but reversed direction on Friday. At the moment, the US Dollar Index is rising 0.48% on the day at 91.85 and the benchmark 10-year T-bond yield is up 3.5%.
Later in the session, the US Bureau of Labor Statistics will release the Producer Price Index (PPI) data for February. Additionally, the University of Michigan will publish its preliminary Consumer Sentiment Index report for March.
In the meantime, Wall Street's main indexes look to start the day lower following Thursday's rally with the S&P 500 Futures losing 0.4% ahead of the opening bell. If the market mood remains risk-averse during the American trading hours, the greenback could preserve its strength and allow USD/CHF to conclude the week on a strong footing.
Technical levels to watch for