USD/CHF consolidates in a narrow trading range above 0.8850, US Services PMI eyed

• USD/CHF oscillates around 0.8855 in Tuesday’s early Asian session.
• Fed’s Bostic said it will likely be appropriate to approve two quarter-point rate cuts by the end of this year. 
• The Swiss CPI eased to 1.2% in February from 1.3% in January, better than expected. 

The USD/CHF pair consolidates in a narrow trading range around the mid-0.8800s during the early Asian session on Tuesday. The Institute for Supply Management (ISM) will publish the US Services PMI report later in the day, which is estimated to ease from 53.4 in January to 53.0 in February. At press time, USD/CHF is trading at 0.8855, gaining 0.08% on the day. 

Atlanta Fed President Raphael Bostic said that the US central bank is under no urgent pressure to cut interest rates given a strong economy and job market. Bostic further stated that it will likely be appropriate for the Fed to approve two quarter-point rate cuts by the end of this year. Financial markets also believe that the Fed will cut its benchmark interest rate this year. According to the CME Group’s FedWatch tool, investors have priced in a 99.5% chance of at least one rate cut by December. 

On Monday, the Swiss Consumer Price Index (CPI) eased to 1.2% in February from 1.3% in January, better than the market expectation of 1.1%. This figure was the lowest inflation rate since October 2021. 

The US ISM Services PMI will be due on Tuesday. On Wednesday, investors will monitor Fed's Chair Jerome Powell's testify. The hawkish comments from the Fed officials might boost the Greenback and create a tailwind for the USD/CHF pair. The highlight this week will be the US employment data, including Nonfarm Payrolls (NFP), Average Hourly Earnings and Unemployment Rate.