USD/CHF holds its position around 0.9100, FOMC Meeting Minutes eyed

USD/CHF snaps its three-day winning streak, trading around 0.9100 during the European session on Tuesday. The yield on the 10-year Swiss government bond inched higher to around 0.72%, which has indicated the Swiss National Bank (SNB) to maintain current interest rates. This could have strengthened the CHF and weakened the USD/CHF pair.

Traders await the Employment Level released by the Swiss Statistics later in the week. Also, the Swiss National Bank (SNB) Chairman Thomas Jordan will deliver a speech about communication, monetary policy, and public impact at the Swiss Media Forum in Lucerne, Switzerland on Friday.

On the USD side, the downward correction of the US Dollar (USD) is attributed to the lower US Treasury yields, undermining the USD/CHF pair. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against the six other major currencies, edges lower to near 104.60 with 2-year and 10-year yields on US Treasury bonds standing at 4.83% and 4.43%, respectively, by the press time.

The US Federal Reserve (Fed) maintains a cautious stance regarding inflation and the possibility of rate cuts in 2024. On Monday, Loretta Mester, President of the Federal Reserve Bank of Cleveland, told Bloomberg that she no longer believes three rate cuts in 2024 are appropriate. Mester highlighted that inflation risks are skewed to the upside and emphasized that there is no harm in spending additional time gathering data on inflation, given the strength of the economy.