USD/CHF recovers to near 0.9000 ahead of Fed Powell’s testimony.
Investors expect that the Fed will start reducing interest rates from September.
Market speculation for more rate cuts by the SNB has improved.
The USD/CHF pair rebounds to near the psychological resistance of 0.9000 in Tuesday’s European session. The Swiss Franc asset moves higher as the US Dollar (USD) gains ground ahead of the Federal Reserve (Fed) chair Jerome Powell’s semi-annual Congressional testimony, which is scheduled at 14:00 GMT.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, steadies after declining to a fresh three-week low near 104.85.
Fed Powell would provide cues about when the central bank will start reducing interest rates. Financial markets currently expect the Fed to begin lowering its key rates from the September meeting. This week, the major trigger for the US Dollar will be the US inflation data for June which will be published on Thursday..
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