Anna 
During the early European hours on Tuesday, the USD/CHF pair was seen recovering its recent losses and trading near 0.9120. The upswing in the pair can be attributed to the strength of the US Dollar (USD), which is bolstered by better-than-expected Retail Sales figures from the United States (US). These positive figures have raised expectations that the Federal Reserve (Fed) might maintain higher interest rates for a prolonged period.
Furthermore, the US Dollar Index (DXY) has extended its gains to nearly 106.30. Concurrently, yields on US Treasury bonds for both the 2-year and 10-year stand at 4.93% and 4.62%, respectively, at the time of reporting. Geopolitical tensions in the Middle East have further fueled demand for the safe-haven US Dollar (USD) among investors.
Federal Reserve (Fed) Bank of San Francisco President Mary Daly commented on Monday, stating that while there has been notable progress on inflation, there is still further ground to cover. Daly emphasized the importance of being confident that inflation is on a path toward the target before considering any action.
On the other hand, Swiss Producer and Import Prices (MoM) showed steady growth in March, increasing by 0.1%. However, Producer and Import Prices (YoY) experienced a more significant contraction, declining at a rate of 2.1% compared to the previous contraction of 2.0%.
The Swiss Franc (CHF) had already depreciated significantly following the Swiss National Bank’s (SNB) unexpected rate cut in March. With inflation showing signs of moderation in March and business confidence remaining pessimistic, market speculation suggests that the SNB might implement another rate cut during its upcoming June meeting.
