USD/CHF struggles around 0.9280, lacks follow-through ahead of US Services PMI

• USD/CHF is struggling to cross 0.9280 as investors await US Services PMI.
• The outperformance of DXY is failing to push the major higher amid a firmer Swiss franc.
• Swiss Unemployment Rate and FOMC minutes are major events that investors will keep on the radar.

The USD/CHF pair is facing barricades around 0.9280 despite the strong gains in the US dollar index (DXY). The DXY is scaling higher after the upbeat US Unemployment Rate. The US Bureau of Labor Statistics reported the Unemployment Rate at 3.6% lower than the estimates of 3.7% and the prior figure of 3.8%. The US administration is continuously recording the Jobless rate below 4%, which indicates achievement of full employment and course higher odds of a fat interest rate hike by the Federal Reserve (Fed).

The Fed is likely to approach a tight-aggressive monetary policy to corner the soaring inflation.  An interest rate hike by 50 basis points (bps) is more likely on cards as the dual mandate of the Fed: inflation and Jobless rate are indicating exhaustion. Meanwhile, CME Group's FedWatch tool is showing 71% odds of a half-point rate increase.

On the Swiss franc front, the currency is performing decently against the greenback on positive market sentiment. The risk-on impulse is favoring the risk-sensitive currencies amid progress in the Russia-Ukraine peace talks. Apart from that, the Swiss franc is firmer ahead of the Swiss Unemployment Rate. The Swiss State Secretariat of Economic Affairs is likely to report the monthly jobless rate at 2.2%, similar to the previous figure.

Going forward, the minutes from the Federal Open Market Committee (FOMC) will be the major event, which is due on Wednesday. But before that, investors will focus on Tuesday’s US Services PMI, which may land at 58 against the previous print of 56.5.