USD/CHF remains flat on the day, awaiting FOMC minutes

The USD/CHF pair is having a difficult time determining a short-term direction as the investors remain on the sidelines ahead of the release of meeting minutes from the latest FOMC meeting. As of writing, the pair is trading at 0.9767, up 0.07% on the day.

Although the markets see a June rate hike as imminent, as the CME Group FedWatch Tool shows the probability at 78.5% on Wednesday, hints on potential changes to the Committee's reinvestment policy later this year will be watched closely by the participants. At the moment, the US Dollar Index is at 97.30, virtually unchanged on the day.

• FOMC Minutes to shed light on Fed’s balance sheet intentions – BMO CM
• Fed Minutes to be carefully examined for any information to unwind the build-up of assets – Lloyds Bank

Earlier in the session, the Housing Price Index for the United States beat the consensus of 0.5% by increasing 0.6% in April but was largely ignored. Following the release of the FOMC meeting minutes, FOMC member Kaplan will cross the wires in the late NA session.

• US: House prices rise 1.4% in first quarter

Technical outlook

The pair could encounter the first support at 0.9740 (daily low) ahead of 0.9700 (psychological level) and 0.9640 (Sept. 29 low). To the upside, align at 0.9800 (psychological level), 0.9850 (May 17 high) and 0.9900 (psychological level).