USD/CHF fluctuates in tight range above parity following yesterday's rally

• 10-year T-bond yield turns positive on the day.
• US Dollar Index sticks to small gains.
• European stocks stay in positive territory. 

The USD/CHF rose above the critical parity mark on Wednesday and touched its highest level in three weeks at 1.0035 before going into a consolidation phase today. At the moment, the pair is virtually unchanged on the day at 1.0023.

The US Dollar Index, which struggled to make a meaningful recovery after the FOMC in its March meeting minutes reiterated that the majority of policymakers expected interest rates to remain steady this year, is posting small gains near the 97 mark today, helping the pair continue to float above parity. Later in the session, Producer Price Index (PPI) and weekly initial jobless claims from the U.S. will be looked upon for fresh impetus.

Additionally, the 10-year T-bond yield is recovering yesterday's losses, pointing out to a slightly stronger risk-appetite that makes it difficult for the CHF to attract investors. Confirming the positive sentiment, major equity indexes in Europe are staying in the positive territory while the S&P 500 Futures is suggesting that Wall Street is likely to open the day in the green as well.

Technical levels to consider