The US dollar remained firm against the Swiss franc, with USD/CHF trading above 0.9100, as investors positioned cautiously ahead of Federal Reserve Chair Jerome Powell’s testimony. The market is closely watching for any signals on the Fed’s future policy stance, particularly as inflation remains a key concern.
The greenback held its ground, supported by steady US Treasury yields and expectations that the Fed will maintain higher interest rates for longer. While recent US data has shown signs of economic moderation, policymakers have reiterated their focus on inflation control, limiting speculation of an early rate cut.
Meanwhile, the Swiss franc struggled for direction, with safe-haven demand offering limited support. Investors remained cautious amid global economic uncertainties, but the lack of fresh catalysts from the Swiss National Bank (SNB) has left CHF vulnerable to broader market flows.
From a technical perspective, USD/CHF remains in a bullish trend, with 0.9100 acting as key support. A sustained move above this level could open the door for further gains, while any dovish signals from Powell’s speech could weigh on the dollar’s momentum.
Traders will be closely monitoring Powell’s comments for clues on whether the Fed sees room for rate cuts later this year or if the current restrictive stance will persist. Any shift in tone could trigger volatility in USD/CHF, with broader market sentiment likely to dictate near-term price action.
For now, the pair holds firm, with investors waiting for clearer policy direction from the Fed. Unless Powell surprises with a significantly dovish outlook, USD/CHF could remain supported above 0.9100, keeping upside potential intact.
