USD/CHF recovers Wednesday's losses, stays below parity

• 10-year T-bond yield turns south following yesterday's rally.
• European stocks trade mixed.
• US Dollar Index posts small gains above 97.

The USD/CHF pair slumped to mid-0.99 area on Wednesday and staged a recovery in the second half of the day to close with modest losses. On Thursday, the pair continued to retrace its fall and is now trying to close in on the critical parity mark. As of writing, the pair was up 0.04% on a daily basis at 0.9985.

Despite the broad-based selling pressure surrounding the greenback on Wednesday, the risk on-mood helped the pair limit its losses. Following yesterday's sharp upsurge, the 10-year US T-bond yield today is losing more than 0.5% to suggest that the market sentiment is turning neutral today. Confirming the mixed sentiment, Germany's Dax is adding 0.15% on the day while the UK's FTSE is erasing 0.4%.

On the other hand, after finding support near 97, the US Dollar Index reversed its direction and supported the pair's daily advance. The DXY was last seen adding 0.1% on the day at 97.20. Later in the session, FOMC members Mester and Williams will be delivering speeches. The only data release from the U.S. will be the weekly jobless claims, which is likely to be ignored by the participants. 

Key technical levels