USD/CHF rebounds from the two-week low, extending gains for the second successive session near 0.9010 during the Early European hours on Tuesday. The pair receives upward support as the upbeat US Treasury yields support the US Dollar (USD) to halt its losses.

Switzerland's stable seasonally adjusted Unemployment Rate (MoM) at 2.1% in October seems to have a moderate impact on the Swiss Franc (CHF).

Moreover, the conflict between Israel and Hamas weighed on the USD/CHF pair as capital might have shifted towards the safe-haven CHF. However, the contained situation in the Middle East has improved market sentiment and could lead to a shift of capital from the Swiss Franc toward riskier assets.

US Dollar (USD) recovers recent losses on the back of improved US bond yields, bidding higher near 105.50. The 10-year US Treasury yield maintains its position at 4.65% by the press time.

The USD/CHF faced challenges as the US Federal Reserve (Fed) is expected to conclude its monetary policy tightening following the dovish Fed's policy decision of keeping interest rates between 5.25% and 5.5% in the November meeting.

Additionally, the softening labor market of the United States (US) influences the traders to price in multiple rate cuts by the end of the year 2024, which could lead to the weakening of the Greenback.

Source : Fxstreet