USD/CHF hovers around 0.9600 as DXY steadies, focus shifts on SNB Jordan’s speech

• USD/CHF steadies near 0.9600 as investors eye the release of US Consumer Confidence and Durable Goods Orders.
• The asset has remained strong this month amid higher expectations of a rate hike by the Fed.
• Swiss 13-year high CPI print at 2.2% may push the Swiss officials to adopt a hawkish stance.

The USD/CHF pair is oscillating in a narrow range of 0.9547-0.9596 from the New York session, following the footprints of the US dollar index (DXY). The asset is awaiting a potential trigger for further guidance.

On Tuesday, the pair is likely to respond to the release of US Consumer Confidence and Durable Goods Orders. A preliminary estimate for the US Consumer Confidence is 108 against the prior print of 107.2. While the monthly Durable Goods Orders are likely to land at 1% against the prior print of -2.1%. Higher reading from the economic data will fetch significant bids on the counter. The asset has remained in the grip of bulls in April as interest rate hike expectations have dominated the risk-sensitive currencies. The greenback bulls have underpinned against the Swiss franc as the Federal Reserve (Fed) chair Jerome Powell has dictated in its testimony that a 50 basis points (bps) interest rate hike is on the cards.

Meanwhile, the Swiss franc will majorly react to the speech from Swiss National Bank (SNB) Governor Thomas J. Jordan, which is due on Friday. This will provide insights into the likely monetary policy action by the SNB in its upcoming monetary policy. The Swiss Consumer Price Index (CPI) was released at 13-year high of 2.2%, which looks a little over the targeted inflation rate of 2%. This might turn the Swiss policymakers hawkish going forward.