USD/CHF continues to edge higher toward 0.9200

• USD/CHF rises for the third straight day on Wednesday.
• US Dollar Index fluctuates in a tight range below 93.00.
• Market action is expected to remain subdued in the second half of the day.

After closing the first two days of the week in the positive territory, the USD/CHF pair preserved its bullish momentum and touched a fresh weekly high of 0.9183 on Wednesday. As of writing, the pair was up 0.23% on a daily basis at 0.9173.

DXY consolidates weekly gains below 93.00

Following the risk rally that was triggered on coronavirus optimism on Monday, the market action turned subdued in the absence of fundamental drivers. However, rising US Treasury bond yields helped the greenback stay resilient against its rivals and allowed USD/CHF to edge higher. The 10-year US T-bond yield gained more than 20% in the last three trading days and the US Dollar Index (DXY) is clinging to modest daily gains near 92.90 at the time of press.

Meanwhile, the market mood remains upbeat on Wednesday with major European equity indexes trading in the positive territory.

There won't be any macroeconomic data releases featured in the US economic docket. Bond markets in the US will be closed in observance of the Veterans Day holiday on Wednesday and the volatility is likely to remain low in the second half of the day.

On Thursday, the weekly Initial Jobless Claims and October Consumer Price Index (CPI) data from the US will be looked upon for fresh catalysts.

Technical levels to watch for