USD/CHF snaps the losing streak near 0.9020, US data eyed

• USD/CHF trades higher amid escalating Middle-East conflict.
• American naval vessels are en route to Israel, sending a message of deterrence to both Iran and the Lebanese militant group.
• The Greenback faces hurdles amid dovish comments from multiple Federal Reserve officials.

USD/CHF trades higher around 0.9020 during the European session on Tuesday, snapping the two-day losing streak. The escalating geopolitical conflicts between Israel and Hamas could strengthen the Swiss Franc, a classic safe-haven currency, and pose a challenge for the USD/CHF pair.

The US Marine Rapid Response force is en route to the waters near Israel. A swift-response contingent comprising 2,000 Marines and sailors is being deployed, aligning with a growing fleet of US warships heading towards Israel. This strategic move aims to convey a deterrence message to Iran and the Lebanese militant group Hezbollah, as reported by CNN.

The US Dollar Index (DXY) is bouncing back from recent losses, trading higher around 106.50. Despite the recovery, the Greenback faced pressure as several Federal Reserve officials expressed dovish views on the trajectory of interest rates.

Federal Reserve Bank of Philadelphia President Patrick Harker echoed these sentiments on Monday, advising against introducing new economic pressures through increased borrowing costs. Harker emphasized the stance that, unless there's a significant shift in the data, the Fed should maintain interest rates at their current levels.

Meanwhile, US Treasury yields continue to rise, with the 10-year US Treasury bond yield reaching 4.74% at the moment.

Looking ahead, market participants are likely to closely monitor the upcoming US Retail Sales data. Additionally, Tuesday's focus will include the release of the Fed Beige Book report. On Thursday, the Swiss Trade Balance for September will be eyed.