USD/CHF surges to 0.9300 as Swiss Franc tumbles
- The Swiss Franc is among the worst performers on Wednesday.
- US Dollar post mixt results during the American session ahead of US CPI.
- USD/CHF rebounds sharply, above the 20-day SMA.
The USD/CHF is rising by more than 70 pips on Wednesday extending the recovery from the multi-month it reached on Monday at 0.9165. The pair rose momentarily above 0.9300 for the first time since Friday.
Following two days of gains, USD/CHF is back above the 20-day Simple Moving Average (SMA) that stands at 0.9285. The bias is still bearish but the 0.9200 area is becoming a strong support.
CHF drops across the board
The Swiss Franc is the worst performer of the American session. Switzerland bonds are soaring. The Swiss 10-year bond yield is falling by more than 10% at the time of writing, at 1.26%, the lowest level since December 19.
The USD/CHF broke above 0.9250 and accelerated to the upside. It peaked at 0.9303 and then pulled back finding support at 0.9285. At the same time EUR/USD trades at fresh multi-month highs above 1.0770. The EUR/CHF is having the best day in months and it hit levels above parity for the first time since July.
The US Dollar is mixed on Wednesday as market participants await the US CPI report due on Thursday. The index is expected to remain unchanged in December with the annual rate falling from 7.1% to 6.5%.
Technical levels