The Swiss to US Dollar pair stays relatively silent in the Asian trading hours as it trades in a very tight trading range with no meaningful momentum.
The US Dollar Index (DXY) continues with a little change and is hovering around the 90 level with 0.03% losses for the day. The US 10-year benchmark yields hold steady at 1.53%, which provides some lower ground for the US Dollar.
The data released on Tuesday sent the US Treasury yields to their lowest level in more than a month, which showed small business confidence declined for the first time this year.
Meanwhile, the US Senate voted 68-32 to approve a sweeping $190b package of legislation aimed to compete with Chinese technology. The “supply chain trade strike force” would look out specific violations that contributed to the bottlenecks in supply chains that could be addressed with tariffs or other remedies. Investors turned cautious on the fear that market sentiment could sour and remained invested in the US dollar.
The Swiss Franc remains solid on better unemployment data, which stood at 3.1% in May from the previous 3.3%. The Switzerland labor market continued to tighten up in May on enhanced economic conditions as the country continued to reopen. The inflation rate is still substantially below the Swiss National Bank (SNB) target of 2%, which means the central bank would continue to adhere to its ultra-accommodative monetary policy.
In the lack of any major economic releases today, the traders are enthusiastically awaiting the US Consumer Price Index (CPI) data tomorrow Thursday to read the market sentiment.
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