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.