USD/CHF holds gains near 0.8970 with focus on US Inflation and Fed policy

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USD/CHF holds gains near 0.8970 with focus on US Inflation and Fed policy
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The USD/CHF pair clings to gains near 0.8970 in Monday’s early European session.

USD/CHF remains firm near 0.8970 as waning Fed rate-cut prospects boost the US Dollar’s appeal. The Fed is expected to maintain a hawkish narrative on the interest rate guidance due to slower progress in disinflation. The SNB will be less likely to continue the rate-cut spell on June 20. The Swiss Franc asset remains firm as the US Dollar strengthens after traders unwind Fed eral Reserve rate-cut bets for the September meeting.

5% from the prior release of 3.6%, with headline figures growing steadily by 3.4%. The Fed is expected to remain status quo for the seventh time in a row. Investors will keenly focus on Fed’s guidance on the interest rates, which is likley to be hawkish as progress in the disinflation process appears to be slowed. On the Swiss front, market expectations for the Swiss National Bank’s rate-cut path will drive the next move in the Swiss Franc.

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