Ella 
USD/CHF remained calm amid thin trading as investors took a cautious stance ahead of the Federal Reserve’s (FED) interest rate decision scheduled for Wednesday. The pair was hovering around 0.8950 during early European trading on Tuesday.
The Fed is expected to keep interest rates steady in a range of 5.25%-5.50% as the central bank aims to curb inflation towards its 2% target. Also, the US headline and core CPI data for May are expected to rise 3.4% and 3.5% year-on-year, respectively.
Strong US non-farm payrolls data for May reduced the likelihood of two rate cuts by the Federal Reserve (FED) in 2024. The CME FedWatch tool showed that the probability of the Fed cutting interest rates by at least 25 basis points in September fell to nearly 49.0% from 59.5% a week ago.
The Swiss Consumer Confidence Index for May was -38, relatively unchanged from -38.1 in April and below the expected -37. Traders are currently looking forward to the Swiss National Bank’s (SNB) Financial Stability Report, which will assess the stability of the banking sector and financial market infrastructure.
The Swiss National Bank (SNB) is unlikely to cut interest rates in June, despite inflation remaining below the 2% threshold. Previously, SNB Chairman Thomas J. Jordan had warned that inflation expectations face slight upside risks.
