During the early European session on Tuesday, the USD/CHF pair continued its upward trajectory, hovering around 0.9125 for the second consecutive day. The prevailing risk-on sentiment, fueled by easing concerns over wider tensions in the Middle East, lends support to the US Dollar (USD). Investors are eyeing the release of the US preliminary S&P Global Purchasing Managers Index (PMI) data for April on Tuesday, anticipating fresh market momentum.
On Monday, the Federal Reserve Bank of Chicago reported an improvement in the National Activity Index to 0.15 in March from the previous reading of 0.09. However, this data failed to significantly impact the Greenback upon release. The hawkish comments from US Federal Reserve policymakers have raised expectations of a delayed rate cut by the central bank, consequently bolstering the USD against the Swiss Franc (CHF).
Market participants are eagerly awaiting the release of the US preliminary Gross Domestic Product Annualized for the first quarter (Q1) and March’s Personal Consumption Expenditures Price Index (PCE) later in the week. These economic indicators are anticipated to provide insights into the possibility of policy easing by the Fed. Should the reports reveal robust data, it could further support the USD and constrain the upside potential of the USD/CHF pair.
Conversely, ongoing geopolitical tensions in the Middle East may prompt safe-haven flows, benefiting the CHF. Additionally, the release of the Swiss ZEW Survey for April on Wednesday and Swiss National Bank (SNB) Chairman Jordan’s speech on Friday will be closely monitored for further market developments.
