USD/CHF consolidates near 0.9250 on firmer USD

• USD/CHF trades modestly higher on Monday in the early Asian trading hours. 
• The US Dollar Index remains strong near 93.00.
• Swiss franc remains on backfoot on improved risk-sentiment.

The USD/CHF continues to portray the familiar moves in the Asian session on Monday. The pair hoveres in a very narrow trade band with no meaningful traction. At the time of writing, USD/CHF is trading at 0.9248, up 0.11% for the day.

The buying pressure in the greenback keeps USD/CHF on the higher side. The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, stays strong near 93.00 following the  US benchmark 10-year Treasury yields. Investors digested the Federal Open Market Committee (FOMC) announcement of  a reduction in its $120 billion monthly bond purchase this year during its two-day policy meeting. In addition to that, the US Fed Chair Jerome Powell hinted that tapering could occur as soon as in November or end in mid-2022. 

In the latest development, the US House Speaker Nancy Pelosi set Thursday for the infrastructure bill vote, earlier she warned no voting would be expected on Monday despite expressing her confidence on the passage of the $1 trillion stimulus package.

It is worth noting that, S&P 500 Futures is trading at 4,451 with 0.13% gains.

On the other hand, the Swiss franc struggled to maintain the recent gains after the Swiss National Bank (SNB) lingered with ultra-low interest rates and indicated no sign to change its ultra-accommodative monetary policy amid lower inflation and a “ high valued “ currency. Furthermore, the SNB Chairman Thomas Jordan warned of the debt problems of China’s Evergrande group and its potential knock-out effect on Switzerland. As for now. Investors turn their attention to the US Durable Goods Orders, and Dallas Fed Manufacturing Index September to take fresh trading impetus.

USD/CHF additional levels