Ella 
USD/CHF pared intraday losses and was trading higher around 0.9000 during early European trade on Thursday as U.S. Treasury yields soared. However, solid Swiss trade balance data released on Thursday provided a challenge for the pair.
The Swiss Federal Customs Administration reported that the import and export balance was positive in September, increasing to 6.316 billion from the previous 3.814 billion. Market expectations were 3.77 billion.
Additionally, escalating geopolitical tensions in the Middle East are likely to increase demand for traditional safe-haven assets such as the Swiss franc (CHF). Clashes emerged on Tuesday over reports of an Israeli airstrike that Gaza authorities claimed killed 500 people at a hospital in the Palestinian territory. Israel countered that the damage was caused by Palestinian attacks.
In response to the humanitarian crisis caused by the Israel-Hamas conflict, US President Joe Biden reached an agreement with Egypt to provide limited aid to Gaza. This complex situation undoubtedly affects financial considerations.
The U.S. dollar index (DXY) rebounded on the back of U.S. economic data and U.S. Treasury yields. Spot prices on the U.S. Dollar Index are hovering around 106.60. As of press time, the 10-year U.S. Treasury yield climbed to 4.97%, an increase of 1.18%.
However, the dovish comments from many Fed officials demonstrated their cautious stance and reluctance to tighten monetary policy in the current economic situation.
There were mixed signals from the U.S. housing market, with September building permits exceeding expectations at 1.475 million (above expectations of 1.45 million). Compounding the picture, housing starts rebounded to 1.35 million, slightly below the consensus estimate of 1.38 million.
