USD/CHF marches towards a 54-week high at 0.9470 ahead of the SNB Jordan’s speech

• USD/CHF inches higher on firmer DXY as doors are open for a 75 bps interest rate hike.
• The speeches from the SNB’s Jordan and Fed’s Powell will remain in focus.
• Inflation has picked up in the Swiss docket amid higher energy and commodity prices.

The USD/CHF pair is continuing its five-day winning streak on Tuesday as the negative market sentiment is appealing to the safe-haven assets. The asset is hovering around Monday’s high at 0.9454 and is expected to extend gains after breaching the former.

Rising hopes of a jumbo rate hike by the Federal Reserve (Fed) is backing the rally in the US dollar index (DXY). The DXY is approaching 101.00 as the Fed has left with no other alternative than paddling up the interest rates at a faster pace. The greenback has got an adrenaline rush after the hawkish comments from the Federal Open Market Committee (FOMC) member James Bullard.  Fed’s Bullard sees interest rates at 3.5% this year and claims that doors are open for a 75 basis points (bps) interest rate too.

For further guidance, the speech from Fed chair Jerome Powell will remain in focus, which is due on Thursday. The dictation from Fed’s Powell will provide a clear path to the lowest rates reversion to neutral rates.

On the Swiss docket, investors are focusing on Tuesday’s speech from Swiss National Bank (SNB) Chair Thomas J. Jordan, which will provide insights about the likely monetary policy action in June. The SNB is holding its interest rates to the lowest at -0.75% despite the inflation print of a 13-year high at 2.2%. Inflation has been picked up recently in Switzerland backed by higher commodity and fossil fuel prices.