USD/CHF attempts to rebound from three-month lows, trades above 0.8800

• USD/CHF receives downward pressure as the Fed is expected to reduce 85 bps rate cuts in 2024.
• US Dollar trades with a negative sentiment as risk-on sentiment improves.
• Traders await Swiss ZEW Survey Expectations to gain further insights into business conditions in Switzerland.

USD/CHF trades above the 0.8800 psychological level during the Asian session on Tuesday, rebounding from the three-month low at 0.8793. The USD/CHF pair struggles to halt the losses due to the weaker US Dollar (USD) following the likelihood of the US Federal Reserve (Fed) to conclude its monetary rate hike cycle. Additionally, investors price in nearly 85 basis points of interest rate cuts by the Fed in the next year.

US Dollar Index (DXY) hovers around 103.20 at the time of writing, with a negative bias as the risk-on sentiment is reinforced by the latest report from the US Census Bureau, showing a notable 5.6% drop in New Home Sales for October at 679,000, as compared to the market expectation of 725,000. The prevailing trend continues to lean towards the downside, fueled by a dip in US Treasury yields.

On Tuesday, the United States (US) will release the Housing Price Index and CB Consumer Confidence, along with insights from Federal Reserve (Fed) officials, providing a comprehensive look at the economic landscape.

The upcoming Swiss ZEW Survey – Expectations on Wednesday holds particular significance as it kicks off the week's notable data releases. The last reported reading in October stood at -37.8, indicating a prevailing pessimism among businesses regarding the Swiss economy.

Moreover, Swiss Real Retail Sales for October is scheduled to be released on Thursday, expecting to see an improvement of 0.2% from the previous 0.6% decline. On Friday, the Gross Domestic Product for the third quarter will be eyed.