The USD/CHF pair is trading weaker near 0.8925 in early Asian trading on Tuesday. The decline is attributed to a weaker US Dollar. Investors are watching for the Swiss SNB Quarterly Bulletin on Wednesday and US economic data later in the week.
Fed policymakers are cautious about rate cuts, focusing on data-dependent decisions. There is a 66% chance of a rate cut in September according to the CME FedWatch Tool. Speeches from Fed officials could provide insight into the interest rate outlook.
Geopolitical tensions in the Middle East and Ukraine are supporting the Swiss Franc. Israeli Prime Minister Netanyahu mentioned the ongoing conflict with Hamas in Gaza, while Russia condemned a US strike in Crimea. Safe-haven flows may benefit the Swiss Franc amid these tensions.