USD/CHF rises above 0.9750 as USD gains momentum

The US dollar gained momentum during the American session amid a rally in US bond yields. USD/CHF rose from 0.9700 and peaked at 0.9758. The pair is hovering near the highs, up just 25 pips for the day, the biggest gain since May 10. 

The pair appears to be entering a consolidation phase after sliding from 1.0100 to 0.9691 (May 22 low). The greenback is attempting to recover but is still under pressure. If it rises above 0.9800/20, it could remove some bearish momentum and would gain some support for a more sustainable recovery. 

On the downside, a daily close below 0.9700 could clear the way for an extension of the slide with a potential target at 0.9650. 

Bond yields helping USD

The US dollar index is at daily highs above 97.20 supported by bond yields. The 10-year yield is rising the most since the beginning of the month. It reached 2.289%, earlier today it was at 2.235%. 

The US dollar is also up against commodity currencies despite the rally in crude oil prices and as equity prices in Wall Street post gains. The Dow Jones is up 0.30% while the Nasdaq gains 0.06%. Gold prices are falling more than $10, with the ounce currently testing $1250.