USD Strength Lifts Dollar Above CHF, Despite Mixed Economic Data

The US Dollar continued to gain strength on Wednesday, pushing the USD/CHF pair up for the second consecutive day. The price of the dollar rose as bond yields surged and oil prices increased due to rising inflation concerns and potential interest rate hikes by the Federal Reserve.

The 10-year Treasury yield reached its highest level since early 2025, reaching 4.80%. This increase in bond yields was driven by a global bond selloff, while crude oil prices jumped significantly following escalating hostilities between the US and Iran.

Despite this mixed economic data from the US, including lower-than-expected job openings and a slight decline in manufacturing PMI, investors are looking ahead to upcoming employment reports for clues on the Fed's next move. In Switzerland, the SVME Purchasing Managers' Index rebounded sharply to 57.1 in August, with consumer activity also showing growth.

However, Brown Brothers Harriman's Elias Haddad notes that the low-yield environment is continuing to weigh on the Swiss Franc, making it the worst-performing G10 currency so far this quarter.