• USD/CHF trades on a softer note near 0.8460 in Wednesday’s Asian session. 
• Lower expectations of a deeper Fed rate cut might cap the pair’s downside.
• The rising geopolitical risks could lift the Swiss Franc. 

The USD/CHF pair trades with mild losses around 0.8460 during the early European session on Wednesday. The escalating geopolitical tensions in the Middle East boost the safe-haven currency like the Swiss Franc (CHF). Traders will take more cues from the US ADP Employment Change data for September later on Wednesday. 

Reduced bets for a 50 basis points (bps) Federal Reserve (Fed) rate cut in November could support the USD against the CHF. Fed Chair Jerome Powell noted on Monday that the US central bank intends to do what it takes to keep the economy "in solid shape," but it is not in a hurry and will lower its benchmark rate ‘over time.’ 

The US employment report on Friday will be in the spotlight. If the jobs report showed a worse-than-expected outcome, this could prompt the central bank to consider cutting rates deeper, which might exert some selling pressure on the USD.

Iran has launched hundreds of missiles toward Israel, and Prime Minister Benjamin Netanyahu vows to retaliate against Iran for a missile attack on Tuesday. US President Joe Biden reaffirmed US support for Israel after the missile attack, describing it as "defeated and ineffective." Increasing geopolitical tensions send investors into safe-haven assets like the CHF and create a headwind for USD/CHF.