USD/CHF recovers from daily lows on US Treasury yields rebound

• USD/CHF prints milder gains on Wednesday in the Asian session.
• Higher US Treasury yields underpin the demand for the US dollar.
• The Swiss franc losses part of its gain on general risk-on sentiment.

USD/CHF consolidates gains in the Asian trading hours on Wednesday. After testing the low at around 0.9111 in the previous session’s, the pair retraced back and made a high of 0.9139 in the initial trading session.

At the time of writing, USD/CHF is trading at 0.9130, up 0.08% for the day.

The US Treasury yields trade higher at 1.29% with 0,53% gains. The US Dollar Index (DXY) diverges from the benchmark 10-year yields movement and trades below 93.00, which capped the gains for USD/CHF.

US New home sales in the US grew 1% to 708K in July, which came in line with the market expectations of 700K.

Meantime, House Democrats approved a $3.5 trillion budget resolution package to support the US economy.
 
It is worth noting that S&P 500 Futures were trading at 4,480, down 0.03%, hit an all-time high in the US session.

As for now, traders are waiting for the Swiss Economic Sentiment Index, US Durable Goods Orders data to gauge the market sentiment.

USD/CHF additional levels