Ella 
USD/CHF was trading sideways around 0.8920 during early European trading on Wednesday, trying to extend gains on the second day. A recovery in the US dollar (USD) has provided upside support to the pair.
The U.S. dollar index, which measures the value of the U.S. dollar against six major currencies, recovered its losses, with spot prices rising to around 104.80.
Additionally, rising U.S. Treasury yields provided support to the USD/CHF pair, coupled with market caution ahead of U.S. consumer price index (CPI) data. At press time, the U.S. 10-year Treasury yield had risen to 4.29%.
The U.S. Federal Reserve will further tighten monetary policy until the end of 2023, and higher inflation data will be an additional factor in the current hawkish mood.
In addition, the expectation that the Federal Reserve will maintain higher interest rates for a long time also helps the dollar maintain higher levels. A stronger dollar is attractive to bulls.
U.S. CPI is expected to increase by 0.5% month-on-month, up from 0.2% last month. Additionally, core CPI is expected to hold steady at 0.2%. These data are likely to provide a clearer picture of inflation in the U.S. economy and have a significant impact on market sentiment and trading decisions on the USD/CHF pair.
