Anna 
During European trading hours on Monday, the USD/CHF pair continued to advance, trading around 0.9070. The US Dollar strengthened against the Swiss Franc for the second consecutive session, driven by a hawkish sentiment surrounding the Federal Reserve (Fed) and its commitment to maintaining higher interest rates for an extended period.
The Fed’s hawkish stance has been reinforced by cautious comments from several Federal Reserve officials regarding interest rate cuts. Neel Kashkari, President of the Minneapolis Federal Reserve, highlighted the importance of maintaining a tight policy stance to achieve inflation goals, while San Francisco Fed President Mary Daly emphasized the need for sustained tight policy.
However, the US Dollar’s gains were somewhat tempered by Friday’s release of the US Consumer Sentiment Index, which indicated a slowdown in economic activity. The index declined to 67.4 in May from April’s 77.2, reaching a six-month low and falling short of market expectations. This contributed to pressure on US Treasury yields, limiting the Greenback’s advance.
The US Dollar Index (DXY), which measures the USD against six major currencies, is trading around 105.30. Meanwhile, US Treasury bond yields for the 2-year and 10-year stand at 4.85% and 4.48%, respectively.
In Switzerland, the SECO Consumer Climate (YoY) experienced a slight decline in April, with a reading of -38.1, slightly lower than the previous month and expectations. Despite this, it remains significantly below the long-term average.
The Swiss National Bank (SNB) has observed its foreign exchange reserves increase to CHF 720 billion in April, marking the fifth consecutive rise. The SNB has shifted its focus away from deliberately strengthening the Swiss Franc (CHF) and is now intensifying efforts to combat inflation, reflecting broader central bank priorities.
