Anna 
During the early European hours on Tuesday, the USD/CHF pair extended its gains for the second consecutive day, reaching near 0.9080. The US Dollar (USD) received a notable boost as US Treasury bond yields surged following positive ISM Manufacturing PMI data from the United States (US), thereby bolstering the USD/CHF pair.
The US Dollar Index (DXY) maintained its winning streak for the fifth successive session, hovering around 105.10 at the time of writing. This upward trajectory is attributed to traders revising their expectations for a quarter-point interest rate cut by the Federal Reserve during its June meeting.
Federal Reserve Chairman Jerome Powell’s remarks on Friday indicated that recent US inflation data aligns with the anticipated path, reinforcing the Fed’s stance on interest rate adjustments for the year.
Conversely, Real Retail Sales (YoY) from Switzerland experienced a decline of 0.2% in February, contrasting with the expected increase of 0.4% and the previous uptick of 0.3%. This lower-than-expected figure has contributed to downward pressure on the Swiss Franc (CHF).
The Swiss National Bank’s (SNB) statement highlighted the feasibility of easing monetary policy due to the effectiveness of inflation-fighting efforts over the past two and a half years.
Moreover, analysts at ING anticipate two additional rate cuts from the SNB in 2024, barring any unforeseen developments in the global economic landscape that could rapidly escalate inflationary pressures once more.
As the USD/CHF pair continues its upward momentum amidst shifting economic dynamics, traders will closely monitor developments in both the US and Swiss economies for further insights into currency movements.
