The USD/CHF pair aims to stay above the key level of 0.9200 as the US Dollar remains strong. Market watchers are eagerly awaiting the Federal Reserve’s policy announcement for new guidance on interest rates. Swiss Real Retail Sales are expected to show a growth of 0.2% in March.
The US Dollar is holding onto its gains after a positive report from the ADP agency, which showed an increase of 192K payrolls in the private labor market for April, surpassing expectations. Investors are now looking to the Fed’s decision on interest rates, with predictions pointing towards no change in the current range of 5.25%-5.50%.
The Fed is likely to maintain a cautious approach to interest rates due to persistent inflation concerns. Any rate cuts will only come when there is confidence that inflation will reach the target rate of 2%. On the Swiss Franc side, investors are awaiting the Real Retail Sales data for March, which is expected to show a modest growth of 0.2%. Despite this, the Swiss National Bank may still consider further interest rate cuts following their recent reduction in March.