USD/CHF struggles to breach 0.9200 as risk-on mood downs USD

• USD/CHF is juggling around 0.9200 in a tight range of 40 pips as risk-aversion evaporates.
• Biden-Putin summit is likely to fade off the obscurity over the Russia-Ukraine tussle.
• The risk-on impulse pushes the US dollar index below the 96.00 mark.

The USD/CHF pair is struggling to breach 0.9200 on the upside, as the market sentiment turns positive on favorable developments over the Russia-Ukraine tensions. The acceptance of Russia’s Vladimir meeting proposal by US President Joe Biden to discuss the security in the Eurozone has cooled off the uncertainty. However, the major factor, which has favored risk-on impulse, is the stipulation that Russia doesn’t invade Ukraine.

For Russia, Biden has prepared a package of sanctions that includes barring the US financial institutions from processing transactions for major Russian banks, as per Reuters. This move is likely to keep Russia in control, as a violation of not invading Ukraine may pose serious threats to the Russian economy.

The US dollar index (DXY) is trading below 96.00, 0.2% lower against Friday’s close, as investors cash their funds from the safe-haven greenback amid the risk-on impulse in the markets.

Meanwhile, investors are looking forward to the cues that can help them to decide the extent of policy tightening by the Federal Reserve (Fed). The rising bets upon a 50 basis points (bps) interest rate hike by the Fed in March’s monetary policy committee (MPC) is holding the investor’s nerves.

Adding to the headlines of geopolitical issues, the market participants are eyeing the monthly US Consumer Confidence and PMI Composite Reports on Manufacturing and Services, both will be released on Tuesday. While the Swiss franc will be guided upon the release of Wednesday’s ZEW Survey Expectations by the Centre for European Economic Research.