Anna 
During early European trading on Monday, the USD/CHF pair is trading stronger near 0.9150. This strength is attributed to expectations that the US Federal Reserve (Fed) will initiate interest rate cuts starting from its September meeting, which provides support to the US Dollar (USD) and lifts the pair.
Investors are eagerly awaiting a speech by Swiss National Bank’s (SNB) Chairman Thomas Jordan on Tuesday for fresh insights, ahead of the release of Switzerland’s Gross Domestic Product (GDP) for Q1.
The Greenback continues to receive support from hawkish signals from Fed policymakers. They have emphasized keeping borrowing costs higher for longer than initially expected, especially in response to a series of disappointing inflation data points, with inflation remaining well above the Fed’s 2% target.
Additionally, speculation of a delay in the Fed’s easing cycle this year has been fueled by stronger-than-expected US economic data released on Friday. US Durable Goods Orders for April exceeded market expectations, rising by 0.7% month-on-month. The University of Michigan Consumer Sentiment Index for May, though slightly lower than April, still came in stronger than estimated.
On the Swiss front, early reports on Monday revealed casualties from Israeli air attacks on a camp in Rafah for displaced people in Gaza. Geopolitical tensions in the Middle East will be closely monitored by market participants, as any signs of escalating tensions could boost safe-haven flows, benefiting the Swiss Franc (CHF) and potentially creating a headwind for USD/CHF.
