USD/CHF jumps back closer to near 1-year tops

   •  The recent USD rally gets an additional boost from rising US bond yields.
   •  Fading safe-haven demand supports the pair’s up-move on Wednesday.
   •  Traders now eye today’s release of the US PPI print for some fresh impetus.

After yesterday's directionless move, the USD/CHF pair caught some fresh bids and inched back closer to Monday's near 1-year tops. 

On Tuesday, the pair lacked any firm directional bias and seesawed between tepid gains/minor losses amid uncertainty over the Iran nuclear deal. With the US President Donald Trump's decision to withdraw from an international nuclear deal with Iran failing to interrupt the recent US Dollar rally, the pair was now seen building on overnight rebound from the parity mark.

Bulls also seemed to track a goodish pickup in the US Treasury bond yields, which remained supported by rising speculations that the Fed might opt for a faster monetary policy tightening cycle. Adding to this, a muted reaction across global equity markets did little to boost the Swiss Franc's safe-haven appeal and provided an additional boost to the pair's steady climb through the early European session.

Moving ahead, the release of US Producer Price index (PPI) for April, a key highlight from today's relatively thin economic docket, might now be looked upon for some fresh impetus later during the early NA session.

Technical levels to watch

A strong follow-through buying interest beyond 1.0055-60 area has the potential to continue boosting the pair further towards reclaiming the 1.0100 handle. On the flip side, immediate support is now pegged at the parity mark, which if broken might prompt some long-unwinding trade and accelerate the fall further towards the 0.9960 support area.