USD/CHF oscillates around 0.9640 as investors await Fed policy

• USD/CHF is juggling in a 0.9633-0.9648 range as focus shifts to Fed policy.
• A divergence in US Retail Sales data and the US Durable Goods Orders data may impact the DXY.
• The Fed will most likely dictate a consecutive 75 bps rate hike.

The USD/CHF pair is auctioning in a minute range of 0.9633-0.9648 from the late New York session after failing to cross the critical hurdle of 0.9660. The asset is expected to keep juggling ahead as investors are awaiting the announcement of the interest rate decision by the Federal Reserve (Fed), which is due on Wednesday.

On a broader note, the asset has remained in the grip of bears as the US dollar index (DXY) has remained vulnerable over the past week. The DXY has established below the critical support of 107.00 and is likely to deliver more downside as the Federal Reserve (Fed) is not expected to remain ambitious this time.

Softer earnings from big tech boys and a decline in overall demand due to soaring price pressures are going to weaken Fed policymakers in making a bold announcement. However, maintenance of the status quo looks imminent.

Apart from the Fed policy, the US Durable Goods Orders data will also fetch investors’ sight. The economic data is expected to display a vulnerable performance as a downward shift to -0.2% vs. 0.8% signals a huge deviation.

It is worth noting that July’s Retail Sales print remained at 1%, significantly higher than the consensus and former print. A huge divergence between Retail Sales data and US Durable Goods Orders data indicates that soaring energy bills and costly food products were responsible for higher former economic data and overall demand is vulnerable.

On the Swiss franc front, the release of Real Retail Sales will hog the limelight. Earlier, the economic data landed at -1.6%. The economic catalyst is expected to remain higher as soaring energy bills and prices of food products will elevate Real Retail Sales. However, a slippage in the economic data will indicate a major slump in the overall demand. This may weaken the Swiss franc bulls ahead.