The USD/CHF pair edged lower toward 0.9400 in the early trading hours of the European session but managed to reverse its direction. As of writing, the pair was up 0.2% on the day at 0.9440. The broad-based USD strength on the back of surging US Treasury bond yields allowed USD/CHF to close in the positive territory on Tuesday. Although the pair extended its rally during the Asian trading hours and touched its highest level since July at 0.9447 on Wednesday, the subdued trading action ahead of the Easter holiday is making it difficult for USD/CHF to find direction.
On the other hand, the US Dollar Index, which reached a fresh multi-month high of 93.43 earlier in the day, is moving sideways around 93.20 as investors await the ADP Employment Change data and US President Joe Biden's infrastructure plan. Meanwhile, the 10-year US Treasury bond yield is up more than 1% on a daily basis but stays below the key 1.75% mark. If the 10-year T-bond yield manages to reclaim that level, the USD could start outperforming its rivals and help USD/CHF push higher.