USD/CHF steadies around 0.9330 ahead of the Swiss Unemployment Rate

• USD/CHF is juggling in a range of 0.9304-0.9344 after a firmer upside move on the release of the FOMC minutes.
• FOMC indicates one or more 50 bps interest rate hikes by the Fed.
• Swiss Unemployment Rate is seen at 2.2%, identical to its previous figure.

The USD/CHF pair is oscillating in a narrow range of 0.9304-0.9344 after a strong upside move from the March 31 low to near 0.9200. The pair have remained in positive territory amid rising expectations of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed).

Fed policymakers are continuously hinting that investors should brace for higher interest rates as the Fed has left with no other quantitative measure that could contain the soaring inflation. Adding to that, the tight labor market amid a lower jobless rate since February 2020 at 3.6% is compelling an interest rate hike to contain the inflation mess.

Meanwhile, the release of the Federal Open Market Committee (FOMC) minutes on Wednesday has raised uncertainty in the market. The minutes of March’s monetary policy meeting by the Fed dictate that the balance sheet reduction should be done at a more rapid pace than the pace adopted in the 2017-19 episode. Also, one or more 50 bps interest rate hike by the Fed is appropriate to ease off the elevated inflation pressure.

On the Swiss docket, investors are waiting for the release of the Unemployment Rate, which will guide them about the likely monetary policy stance to be adopted by the Swiss National Bank (SNB) going forward. As per the market estimates, the Swiss State Secretariat for Economic Affairs (SOEC) will display the Unemployment Rate at 2.2%, similar to its prior print.