Ella 
USD/CHF was flat around 0.9125 in early European trading on Wednesday. Traders remained cautious ahead of this week’s key inflation data. Later on Wednesday, the Federal Reserve will release its Beige Book and Fed Chairman John Williams will also speak.
The U.S. Federal Reserve is unlikely to cut interest rates until later this year as inflation remains stubbornly high. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said on Tuesday that the Fed’s monetary policy stance is restrictive, but further rate hikes cannot be ruled out. Investors currently see a near 50% chance that the Fed will keep interest rates unchanged in September, according to the CME FedWatch tool.
The Conference Board’s consumer confidence index rose to 102.0 in May from 97.5 in April, better than the expected 95.9, according to data released on Tuesday. The data unexpectedly rose in May after three consecutive months of declines, but concerns about inflation remain, with U.S. consumers expecting higher interest rates in the year ahead. This continues to support USD/CHF.
