Markets await June US inflation data and Fed Chair testimony after hawkish remarks from Governor Waller lifted rate hike bets.
The US Dollar steadied near 0.8130 against the Swiss Franc on Tuesday, consolidating a 0.7% gain from Monday driven by rising geopolitical risks and hawkish Federal Reserve comments. Fed Governor Christopher Waller signaled potential near-term tightening if inflation persists above the 2% target, prompting traders to price in higher rate hike odds and lift the USD across major pairs.
June’s US Consumer Price Index, due later Tuesday, is expected to show inflation exceeding the Fed’s target, reinforcing Waller’s stance. The data precedes Fed Chair Kevin Warsh’s congressional testimony, where markets will watch for further policy cues. Technical indicators, including a bullish MACD crossover and RSI in positive territory, suggest upward momentum for USD/CHF.
Resistance is seen at 0.8150, with a breakout targeting 0.8170. The pair’s move above the year-to-date high at 0.8130 signals bullish control, though overbought conditions have yet to materialize.