Ella 
During the early European trading hours on Tuesday, USD/CHF has shown signs of recovery from previous losses, hovering around the 0.9120 mark. The US Dollar’s robust performance has lent support to the USD/CHF pair, driven by encouraging Retail Sales data from the United States, fueling expectations of sustained higher interest rates by the Federal Reserve.
The US Dollar Index (DXY) has extended its upward trajectory, nearing 106.30, while yields on US Treasury bonds, particularly the 2-year and 10-year bonds, stand at 4.93% and 4.62%, respectively, at the time of reporting. Heightened geopolitical tensions in the Middle East have further bolstered demand for the safe-haven US Dollar.
Federal Reserve Bank of San Francisco President Mary Daly underscored on Monday the progress made in addressing inflation concerns but emphasized the need for continued vigilance until inflation demonstrates a clear trajectory toward the target level.
Conversely, Swiss Producer and Import Prices (MoM) in March displayed marginal growth of 0.1%. However, Producer and Import Prices (YoY) witnessed a slight contraction, declining by 2.1% compared to the previous rate of 2.0%.
The Swiss Franc had previously experienced a notable depreciation following the unexpected rate cut by the Swiss National Bank (SNB) in March. With inflation showing signs of moderation in March and business confidence remaining subdued, market speculation has intensified regarding the possibility of another rate cut by the SNB during its forthcoming June meeting.
