USD/CHF steadies above 0.9560, focus is on US GDP and Fed Powell

The USD/CHF pair is trading in a minor range of 0.9551-0.9567 since the early Asian session as the unavailability of any potential trigger has shifted the FX domain in a consolidation phase. Earlier, the asset remained in the grip of bears after failing to sustain above the round-level resistance of 0.9600. It looks like the asset is following the footprints of the US dollar index (DXY).

The DXY is struggling to cross the critical hurdle of 104.00 as investors are on the sidelines ahead of the speech from Federal Reserve (Fed) Jerome Powell. The speech from Fed Powell may dictate the likely monetary policy action for the July meeting.

Investors should brace for the continuation of the jumbo rate hike from the Fed as the prior rate hike announcements have failed to make any significant impact on the inflation rate. The US economy is operating at an inflation rate of 8.6%, which is more than four times of the desired inflation rate.

Apart from that, the US Gross Domestic Product (GDP) numbers will also remain in focus. A preliminary estimate for the US GDP is -1.5% on an annual basis for the first quarter, similar to its previous release. No wonder, the US agency may reveal an upside surprise considering the upbeat US Durable Goods Orders, which were more than expectations.

On the Swiss franc front, investors are focusing on the ZEW Survey- Expectations, which is due on Wednesday. As per the market consensus, the economic data could decline to -70.7 vs. -52.6 recorded earlier. A higher-than-expected figure will strengthen the Swiss franc bulls against the greenback.