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- The Swiss Franc clings to losses near 0.8088 against the US Dollar amid hawkish Fed bets.
- The Fed is highly anticipated to deliver at least one interest rate hike this year.
- Investors await the US S&P Global PMI and Swiss ZEW Survey – Expectations data.
The Swiss Franc (CHF) holds onto Monday’s losses around 0.8088 against the US Dollar (USD) during the Asian trading session on Tuesday. The Swiss Franc pair faces selling pressure due to continued outperformance by the US Dollar amid firm expectations that the Federal Reserve (Fed) will hike interest rates this year.
At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, ticks higher at around 101.05, the highest level seen in over a year.
According to the CME FedWatch tool, the odds of the Fed hiking interest rates this year are almost 87%.
Hawkish Fed bets have been intensified as the Federal Open Market Committee (FOMC) Economic Projections report, released last week, showed that nine out of 19 policymakers have projected an interest rate hike this year. It appears a sharp turnaround as none of the officials favored a hike this year in March’s Economic Projections report.
For more cues on the United States (US) interest rate outlook, investors await the US Personal Consumption Expenditure Price Index (PCE) data for May, which will be released on Thursday.
In Tuesday’s session, investors will focus on the preliminary US S&P Global PMI data for June. The Services PMI is expected to arrive higher at 51.0 from 50.7 in May.
On the Swiss Franc front, investors await the ZEW Survey – Expectations data for June, which will be released on Wednesday.
