USD/CHF is facing selling pressure near 0.9100 as the US Dollar weakens on disappointing ISM Services PMI data. The Services PMI fell to 51.4, below expectations, causing the Greenback to drop to 104.40 on the DXY index. This has led to a decrease in expectations for a Fed rate cut in June, with traders now pricing in a 54% chance, down from 70% last week. Market sentiment has improved as the S&P 500 gained after a slow start.
Federal Reserve officials have given hawkish guidance, suggesting that interest rates may only be reduced once this year due to the strong economy. The focus now shifts to the upcoming US Nonfarm Payrolls data for March, set to be released on Friday.
On the Swiss Franc side, weak Retail Sales data has raised speculation for more rate cuts by the Swiss National Bank. Retail Sales unexpectedly dropped by 0.2%, prompting concerns about a potential increase in quantitative easing measures by the SNB.