• USD/CHF picks up bids to refresh weekly top amid broad US dollar weakness.
• Traders brace for hawkish Fed signals from FOMC Minutes.
• Yields rebound but USD bulls stay alarmed with eyes on US Retail Sales, FOMC Minutes.

USD/CHF renews its weekly high to 0.9515 as the US dollar buyers return to the table, after a brief absence the previous day. In doing so, the Swiss currency (CHF) pair rises for the third consecutive day by the press time of early European morning on Wednesday.

US Dollar Index (DXY) refreshed its three-week high before reversing from 106.94, up 0.10% near the intraday high of 106.60 at the latest. The DXY rebound could be linked to the market’s preparations for today’s US Retail Sales for July, expected 0.1% versus 1.0% prior, as well as the Fed minutes.

Additionally favoring the USD/CHF buyers could the latest bounce in the US Treasury yields, as well as fears of hawkish Fed bets.

That said, the US 10-year Treasury yields defend the previous day’s rebound at 2.835%, up one basis points (bps), whereas S&P 500 Futures seesaw near a four-month high.

Recently firmer US Industrial Production, up 0.6% in July versus 0.3% expected and upwardly revised 0.0% prior, joins mixed housing data to underpin the US dollar’s safe-haven demand. Also, China’s Premier Li Keqiang recently crossed wires, via the Communist Party’s flagship newspaper People’s Daily, while urging local officials from six key provinces that account for about 40% of the country’s economy to bolster pro-growth measures. On Wednesday, President Xi Jinping and state planner National Development and Reform Commission (NDRC) showed readiness for more measures to combat the recession fears.

It’s worth noting, however, that the USD/CHF run-up needs validation from the Fed Minutes to remain on the cards.

Technical analysis

The USD/CHF pair’s recovery beyond the 200-DMA, around 0.9440 by the press time, keeps the buyers hopeful of crossing the immediate resistance line stretched from mid-July, close to 0.9535 at the latest.