USD/CHF Oscillates between 0.9330 and 0.9350 as the DXY Finds Support at 99.70

The USD/CHF pair is trading in a range of 0.9325-0.9356 as the US dollar index (DXY) seeks bids near 99.70 following a sharp decline on Wednesday. The asset is inching closer to its weekly high of 0.9370.

The pair is aiming higher as the probability of a Federal Reserve interest rate hike of 50 basis points (bps) increases (Fed). In May, the Fed will dictate monetary policy, and a rising US Consumer Price Index (CPI) combined with a tight job market increases the likelihood of an aggressive hawkish attitude for May and the remainder of the year.

Fed Governor Christopher Waller advocated for aggressive interest rate hikes in the future, but cautioned that aggressiveness should not be confused with abruptness, as this could push the US economy into recession. An rapid shift in interest rate policy will significantly lower aggregate demand and employment possibilities, posing a substantial danger to the US economy.

Investors' attention will now turn to monthly US retail sales, which are expected to come in at 0.6 percent, up from the previous figure of 0.3 percent. While the Swiss bourse will publish its annual Real Retail Sales report later this month. Previously, Swiss Real Retail Sales were registered at 12.8 percent during a 12-month period.

USD/CHF