The USD/CHF pair maintained its bid tone heading into the North American session and was last seen trading around the 0.9235 region, or one-month tops. The pair prolonged its recent strong rebound from the vicinity of the key 0.9000 psychological mark and gained some follow-through traction for the sixth consecutive session on Wednesday. The ongoing strong momentum was sponsored by sustained US dollar buying, bolstered by expectations that the Fed will begin scaling back its pandemic-era stimulus sooner rather than later.
The pair prolonged its recent strong rebound from the vicinity of the key 0.9000 psychological mark and gained some follow-through traction for the sixth consecutive session on Wednesday. The ongoing strong momentum was sponsored by sustained US dollar buying, bolstered by expectations that the Fed will begin scaling back its pandemic-era stimulus sooner rather than later. The repricing of the Fed's next policy move, along with the passage of a $1 trillion US infrastructure bill pushed the US Treasury bond yields to the highest level since July 14. In fact, the yield on the benchmark 10-year US government bond touched an intraday high of 1.376%, which, in turn, was seen as another factor that continued acting as a tailwind for the greenback.