USD/CHF approaches towards 0.9330 as DXY strengthens, US NFP eyed

• USD/CHF is approaching 0.9330 despite the expectation of a poor performance from US employment.
• SNB has maintained the status quo by keeping the interest rates unchanged.
• Odds are rising for a 50 bps interest rate hike by the Fed in May monetary policy estimate.

The USD/CHF pair is marching towards 0.9330 sharply on Monday amid a broader optimism in the mighty greenback. The pair has witnessed a decent buying interest after hitting a low of 0.9260 on Friday.

The asset is expected to remain in a bullish territory going forward as the Swiss National Bank (SNB) has kept the interest rates unchanged on Thursday. It is worth noting that the SNB has untouched its interest rates since 2015 and is likely to continue the decision amid a capped inflation in its region.

Meanwhile, the US dollar index (DXY) is looking to surpass its resistance at 99.00 amid rising odds for an aggressive tightening policy by the Federal Reserve (Fed). Fed policymakers have started favoring a 50 basis point (bps) interest rate hike for May monetary policy as it is the only way to corner the inflation mess. Considering the soaring inflation, Fed has to bank upon aggressive interest rates to achieve price stability sooner.  

For further guidance, investors will focus on the US Nonfarm Payrolls which will pose a significant impact on the asset. The US employment numbers are likely to land at 488K much lower than the previous print of 678K. While the Swiss docket will report Real Retail Sales on Thursday. The Swiss Real Retail Sales are likely to print at 4.7% lower than the previous print of 5.1%.