Ella 
USD/CHF was trading above psychological resistance at 0.9000 during early European trading. The pair is aiming to extend its gains as investors remain cautious ahead of the Federal Reserve’s (Fed) interest rate decision scheduled for Wednesday.
S&P 500 futures fell in Asia, showing risk aversion amid geopolitical tensions. The Israeli army is preparing to launch a ground offensive in Gaza to destroy Palestinian military forces in retaliation for the air strikes launched by Hamas since October 7.
The U.S. Dollar Index (DXY) is struggling to continue its upward move above 106.40 as the Federal Reserve is widely expected to make a neutral interest rate decision. However, the Fed’s policy outlook remains hawkish due to strong consumer spending, strong labor market conditions and potential signs of recovery in the manufacturing and services sectors.
Market participants expect the U.S. economy to remain resilient despite rising borrowing costs, making excess price pressures above the 2% inflation target the most stubborn. Therefore, hawkish guidance is appropriate. In addition to easing price pressures, higher long-term U.S. bond yields have allowed Federal Reserve policymakers to keep interest rates steady. The 10-year Treasury yield has rebounded to around 4.88%.
In the Swiss franc, investors are awaiting a speech scheduled for Wednesday from Thomas J. Jordan, chairman of the Swiss National Bank (SNB). Swiss National Bank Chairman Jordan is expected to discuss keeping interest rates unchanged at 1.75% for an extended period to ensure price stability. Swiss inflation data for October will be closely watched this week.
