Cautious optimism prevails as US President Biden thinks no imminent fears of nuclear use in Russia-Ukraine war.USD/CHF renews its intraday low near 0.9305 as it pares the recent gains around the weekly top during Thursday’s sluggish session. The Swiss currency pair’s latest pullback could be linked to the market’s adjustments of the latest moves amid the Japan holidays and a pullback in the US Treasury bond yields.
The underlying reason could be linked to the comments from US President Joe Biden as he thinks that his Russian counterpart isn’t up to using nuclear arms by backing off an international treaty. However, the fears surrounding the Ukraine-Russia war are far from over, with the latest edition of the West and China escalating the matter to the worse. That said, the Wall Street Journal recently said that the US is considering the release of intelligence on China’s potential arms transfer to Russia.
Also likely to have favored the USD/CHF pullback is the latest retreat in the US inflation expectations. That said, the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve signal a pullback in the US inflation expectations by retreating from the multi-day top. Furthermore, the first daily negative of the US benchmark Treasury bond yields and mixed Wall Street close also allowed theIt’s worth noting that the latest Federal Open Market Committee’s Monetary Policy Meeting Minutes stated that all participants agreed more rate hikes are needed to achieve the inflation target while also favoring further Fed balance sheet reductions, which in turn favored DXY bulls. On the same line, St.