USD/CHF jumps back closer to near 2-week tops, above mid-0.9900s

• A modest pickup in the USD demand helped regain some traction.
• Bulls seemed rather unaffected by the prevalent cautious mood.
• Sliding US bond yields might hinder the USD uptick and cap gains.

The USD/CHF pair spiked to fresh session tops, around the 0.9960-65 region in the last hour, with bulls making a fresh attempt to build on the momentum further beyond the very important 200-day SMA.
 
Following the previous session's good two-way price swings, the pair managed to regain some positive traction and was being supported by a goodish pickup in the US Dollar demand. The incoming positive trade-related headlines reinforced prospects for a partial US-China trade deal and extended some support to the Greenback.

Focus remains on FOMC

Meanwhile, the intraday uptick seemed rather unaffected by a slightly softer tilt in the global risk mood, which tends to underpin the Swiss Franc's perceived safe-haven status. The USD bulls also shrugged off a sharp intraday slide in the US Treasury bond yields, albeit might turn out to be the only factor capping further gains.
 
Moving ahead, Tuesday's US economic docket – highlighting the release of the Conference Board's Consumer Confidence Index and pending home sales data – will be looked upon for some short-term trading impetus later during the early North-American session.
 
The key focus, however, will remain on the outcome of a highly anticipated FOMC meeting, starting this Tuesday. The Fed is scheduled to announce its policy decision during the US session on Wednesday, which will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus.

Technical levels to watch